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.
Share with your friends: 
