Meaning SYNTHETICS: Customized hybrid instruments created by blending an underlying price on a cash instrument with the price of a derivative instrument. It is a combination of security holdings that mimics the price movement of another single security (i.e., synthetic call: long position in a stock combined with a put on that position; a protected long sale; synthetic put: short position in a stock combined with a call on that position; a protected short sale)
More terms such as Synthetics in Dictionary S.
- Definition Soft Spot:
- Examples Stocks or groups of stocks that remain weak in a strong market synthetics definition.
- Definition Soft Currency:
- Examples A money of a country that is expected to drop in value relative to other currencies synthetics explain.
- Definition Systematic Risk Principle:
- Examples Only the systematic portion of risk matters in large, well-diversified portfolios. Thus, expected returns must be related only to systematic risks synthetics what is.
- Definition Straight Value:
- Examples Also called investment value, the value of a convertible security without the conversion option synthetics meaning.
- Definition Serial Covariance:
- Examples The covariance between a variable and the lagged value of the variable; the same as autocorrelation synthetics abbreviation.
