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Synthetic Stock
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(1) A combination of a long call and a short put, or a short call and a long put on the same stock with the same strike and expiration date. A separate cash equivalent position necessary to replicate the stock return fully may, or may not be incorporated. (2) A single stock swap. Other techniques which only approximate the risk/reward characteristics of long or short stock positions with options or swaps are usually called Stock Equivalents. See also Box Spread (2), Jellyroll, Time Box.
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