Series 3: 5.1.3. Synthetic Futures

Taken from our Series 3

5.1.3. Synthetic Futures

A futures contract can also be created synthetically. A synthetic long futures position is the combination of a long call and a short put, both with the same strike price and expiration date. A synthetic short futures position is a combined short call and long put with the same strike and expiration.

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With synthetic futures, the price you pay for the long option

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