synthetic asset

synthetic asset definition - business

synthetic asset

The combination of securities and/or assets in such a way that they produce the same financial effect as would the ownership of an entirely different asset. For example, selling a put option and buying a call option on a commodity produce the same financial effect as actually owning the underlying commodity.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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