STRIKE PRICE - The price at which the holder of an option has the right to buy or sell the underlying. This is a fixed price per unit and is specified in the option contract. Also known as striking price or exercise price.
SYNTHETIC - A strategy that uses options to mimic the underlying asset. The long synthetic combines along call and a short put to mimic along position in the underlying. The short synthetic combines a short call and along put to mimic a short position in the underlying.
In both cases, both the call and
put have the same strike price,
the same expiration, and are on the same underlying.
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