Boo, that's all we get? A charitable little insult? When you have time, get into the guts of it and explain to him in detail why it would not work or is irrelevant. If not, I'll take Suntrader's answer..."These go to eleven."
how would one synthetically replicate it using vanilla products? if you can’t do that then the product will fail as it’s unhedgable and no one will make markets in it.
I'm sure it can be hedged. There are many meanings of "hedging". I assume you don't mean Zero-Delta-Hedging, or do you? Can you please give an example of the one you mean (ie. the currently used hedging method, that you mean)?
I mean it can be replicated with other instruments. otherwise the pricing will be all over the place and no one will want to make a market in it.
I assume you mean the hedging an option writer usually does (or should do ), right? Or do you mean hedging a long position? I must admit I'm not an expert in synthetics, though I know some such methods, but as said not extensively yet. Will need to study them further.
@newwurldmn, does this answer your question? : Synthetic Short Put "A combination of owning stock and having a short call position on that stock essentially has the same potential for profit and loss as being short on puts." (https://www.optionstrading.org/improving-skills/advanced-terms/synthetic-positions/ ) For FairPut the same mechanism applies, though here of course FairPut is used instead of normal Put, ie. then it's called "Synthetic Short FairPut".