Greeks
·
9 min
Synthetic positions and put-call parity
Every option position has a synthetic equivalent built from other instruments. The relationship is enforced by arbitrage and gives the trader options on how to express the same view.
In this lesson
- The four common synthetics
- A worked equivalence
- Risk reversals as synthetic stock
- The American exercise wrinkle
Continue in the app
Read the full lesson in the app
The complete lesson, with worked examples, callouts, and a quiz to test yourself, is in Iron Condor Options.