Synthetic Instruments

Anybody have a simple way of remembering the various methods of creating synthetic instruments?

i.e. Synthetic call= put + stock - riskless discount bond. Thinking through these makes my head hurt.

Can’t you just remeber the one formula and then jumble that around?

C + X/(1+r)^t = P + S


Synthetic Call = P + S - X/…

Synthetic P = C + X/… - S

Sythentic Stock = C+ X/… - P

mnemonics man. I’ve given this in another thread.

C0 + X 0/(1+R) = P 0 + S 0

should be read like the plural of the slang for “male genitalia” = “female genitalia”

Hasn’t failed me once plus promotes gender equality.

COX = PS. Nice one hahah

I just rearrange the formula.

Sip Pepsi = Be Cool

Awesome LOL.

SiP a CoKe

S= stock

P= put

C = call

K = bond

you’re welcome.

SP orty C o X

…whatever works, man.