Interactive payoff widgets for synthetic forwards, put-call parity, covered calls, collars, risk reversals, delta equivalence, and FX option identities.
Curated interactive visuals for this subject — new widgets ship with the app.
Long call + short put, same strike and expiry, behaves exactly like a long forward.
Short call + long put, same strike and expiry, behaves exactly like a short forward — or a short stock with no borrow.
Short the stock, buy a call at the short-sale price — the payoff is exactly a long put.
Long stock + long put — the protective put — behaves exactly like a long call.
Stock + put and call + bond both pay Max(S_T, X) — the identity behind every synthetic in LM1.
A fiduciary call and a synthetic protective put both pay Max(S_T, X) — so parity prices them identically.
The most popular retail options trade and the least popular one are the same risk profile.
Short the stock, then buy a call (loss capped at 1.13) or write a put (income, cushion of only 0.65).
ATM covered call, ATM protective put, and long stock + short half-forward: all delta +50 per 100 shares.
Stock + put below + short call above — slide the strikes together and equity turns into fixed income.
Long OTM call + short OTM put: a split-strike synthetic forward with a premium shelf in the middle.
A call on one currency IS a put on the other — the same contract quoted from the other side.