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Synthetic Call Vs. Protective Put

Aren’t these 2 the same?

Both are specified as Long Stock + Long Put. Are there any differences?

Thanks

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Syn call also has the -bond component.

Start with the put-call parity:

Protective Put = Fiduciary Call

or 

Long Stock + Long Put = Long Call + PV(X)

To replicate the Long Call, rearrange the equation.

Long Call = Long Stock + Long Put - PV(x)

Thus, a synthetic call is the equivalent of a protective put (long stock + long put) and a short bond with PV equal to the strike price.
 

I see what you saying about the put call parity and that is what I originally had in mind. However, Please look at page 442 int he book . 3.5 Synthetic Call. No mentioning of PV(x)…. it gives the impression that they are exactly the same thing. Thanks for your input

The reason why PV(x) isn’t mentioned is because its a minor factor for large movements in the stock price. So you can approximately the relationship without PV(x)

crocboss wrote:
I see what you saying about the put call parity and that is what I originally had in mind. However, Please look at page 442 int he book . 3.5 Synthetic Call. No mentioning of PV(x)…. it gives the impression that they are exactly the same thing. Thanks for your input

There is, in fact, a mention of PV(X): footnote 15.

Simplify the complicated side; don't complify the simplicated side.

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