# of units of stock - what exactly does this mean?

CFA Level III
#1

From SS 13, when creating synthetic equity, the term “# of units of stock” is used but I don’t know exactly what that refers to. Anyone know? This seems like one of those “buzz words” that could pop up.

#2

just shares of stock…

#3

number of shares

#4

I just assumed it was number of shares: Formula for number of units purchased: #contracts(multiplier)/(1+div yield)t

#5

for futures it is the number of futures contracts, not the shares…

#6

If you would have actually bought the stock, that is the number of shares you would have bought.

#7

So if you purchase 10 units, is that like saying you purchased 10 shares of S&P?

#8

10 units would be : 10 s&P futures contracts for futures… or for stock 10 shares of Apple Inc.