OK maybe not a stupid question...possibly just an academic question? I like to spend time "real-time" learning how to trade better! Could you please take the time to "dissect" the idea of "synthetic's.
It's quite useful in that it allows you to put the gains and losses of your trading position(s) in perspective and how they change in various scenarios.
I put this very question to a person on the trading desk @ TDA & he was as puzzled as I am as to the correct answer...thanks for any time your willing to give me.JSOP.. I do enjoy learning...
This person on the trading desk of TDA needs to study payoff diagrams too. LOL Once you study it, you will be able to answer all of the "synthetics" questions under 5 seconds each. Just like in the "Matrix", I can show you the door but you are gonna have to be the one to walk through it.