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Derivatives




Synthetic Underlying


An option trading strategy which is similar to a conversion/ reversal but without involving the underlying leg. In its reversal form, it is constructed by buying a call option and selling a put option at the same exercise price. In a conversion trading, likewise, a call option and a put option are bought at the same exercise price, but the order is submitted to the market as a sell/ offer.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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