Synthetic Combinations STRATEGY: EXAMPLE: Long Split-Strike Synthetic Buy 1 555 Call 112 and Sell I S50 Put 1 PAL) LONG SPLIT-STRIKE SYNTHETIC 5 Stock Price at Expiration 59 Long Call PAL) Short Put PAL) Total PAL 4 3 58 2 57 14 56 72 0 50 58 55 53 SI -2 50 49 48 STRATEGY: SHORT SPLIT-STRIKE SYNTHETIC EXAMPLE Short Split-Strike Synthetic Sell ] 555 Call 112 and Buy 1 550 Put! Short Call Long Pu PAL Tocal Stack Price 59 3 2 57 56 0 8 55 8 5) 51 50 49 15