synthetic


synthetic
A derivative position which is created synthetically by using other derivative contracts. For example, the creation of a synthetic long future by the purchase of a call option and the sale of a put option with the same exercise price and expiry date. The ability to synthetically create any derivative position by the combination of other derivative positions leads to the concept of put/call parity, which states that there is a relationship between option and futures prices. Dresdner Kleinwort Wasserstein financial glossary

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synthetic syn‧thet‧ic [sɪnˈθetɪk] adjective
produced by combining artificial materials, rather than naturally:

• The lightweight shoes are made from synthetic suede and nylon.

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   A financial instrument that is created by combining two or more instruments to create a new asset with distinct attributes. For example, the purchase of a call option on a share and the simultaneous sale of a put option on the same share artificially creates an asset which has the same characteristics as the underlying share and the same risks and potential rewards.

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Ⅰ.
synthetic UK US /sɪnˈθetɪk/ adjective
made artificially and not produced from natural substances: »

synthetic fibres

synthetically adverb
»

synthetically produced drugs

Ⅱ.
synthetic UK US /sɪnˈθetɪk/ noun [C]
an artificial substance or material: »

Man-made gem products are known as synthetics.

»

natural fibres, such as wool and cotton, and synthetics


Financial and business terms. 2012.

Look at other dictionaries:

  • Synthetic — Syn*thet ic, Synthetical Syn*thet ic*al, a. [Gr. ?: cf. F. synth[ e]tique.] 1. Of or pertaining to synthesis; consisting in synthesis or composition; as, the synthetic method of reasoning, as opposed to analytical. [1913 Webster] Philosophers… …   The Collaborative International Dictionary of English

  • synthetic — [sin thet′ik] adj. [Fr synthétique < Gr synthetikos] 1. of, involving, or using synthesis 2. produced by synthesis; specif., produced by chemical synthesis, rather than of natural origin 3. not real or genuine; artificial 4. Linguis.… …   English World dictionary

  • synthetic — ► ADJECTIVE 1) made by chemical synthesis, especially to imitate a natural product. 2) not genuine. ► NOUN ▪ a synthetic substance, especially a textile fibre. DERIVATIVES synthetically adverb …   English terms dictionary

  • synthetic — I adjective artificial, counterfeit, ersatz, factitious, illegitimate, man made, manufactured, mock, not genuine, not natural, pretended, pseudo, quasi, spurious, unnatural II index assumed (feigned), false ( …   Law dictionary

  • synthetic — 1690s, as a term in logic, from Fr. synthétique (17c.), from Mod.L. syntheticus, from Gk. synthetikos, from synthetos, pp. of syntithenai (see SYNTHESIS (Cf. synthesis)). From 1874 in reference to products or materials made artificially by… …   Etymology dictionary

  • synthetic — *artificial, ersatz, factitious …   New Dictionary of Synonyms

  • synthetic — [adj] artificial constructed, counterfeit, ersatz*, fabricated, factitious, fake, false, hokey*, made, makeshift, manufactured, mock, phony, plastic, unnatural; concepts 485,582 Ant. genuine, natural, real …   New thesaurus

  • Synthetic — Synthesis, the combination of two or more parts, whether by design or by natural processes. Furthermore, it may imply being prepared or made artificially, in contrast to naturally. Contents 1 In the sense of combination 2 In the sense of… …   Wikipedia

  • synthetic — synthetically, adv. /sin thet ik/, adj. 1. of, pertaining to, proceeding by, or involving synthesis (opposed to analytic). 2. noting or pertaining to compounds formed through a chemical process by human agency, as opposed to those of natural… …   Universalium

  • synthetic — I. adjective Etymology: Greek synthetikos of composition, component, from syntithenai to put together Date: 1697 1. relating to or involving synthesis ; not analytic < the synthetic aspects of a philosophy > 2. attributing to a subject something… …   New Collegiate Dictionary


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