Are Synthetic Options Truly Equivalent Options?

Discussion in 'Options' started by OddTrader, Aug 7, 2009.

  1. I actually don't know... I honestly did try to look at the texts OT's quoting on Amazon ('cause I just don't seem to have EVERY single option textbook at my fingertips, as OT does), but I ran out of free views :). I tried Cohen's book in particular to answer the question you're asking, but, sadly, to no avail.

    OT, maybe it will work better if you actually post the links next time, as opposed to cutting and pasting? I am sure you're not editing, but I think it would probably be safer and more honest, copyright and all...
     
    #31     Aug 8, 2009
  2. Once again (and again), you guys know very well how to make real sense with your posts!

    I'd have to say that the posters on this options forum and their comments are of very high quality! So long guys!

    Very impressive indeed!
     
    #32     Aug 8, 2009
  3. #33     Aug 22, 2009
  4. According to McMillan, "Equivalent strategies have same profit potential. For example, owning a call is equivalent to owning both a put and the underlying instrument. ... However, the call purchase has a much large probability of losing 100% of that investment."
     
    #34     Aug 22, 2009
  5. OT, I thought you were done with this thread? Why do you keep beating this dead horse?
     
    #35     Aug 22, 2009
  6. #36     Aug 22, 2009