Synthetic Positions STRATEGY: EXAMPLE: Synthetic Long Put Sell Stock Short 50 and Buy I S50 Call SYNTHETIC LONG PUT PAL) Stock Price at Expiration SS Short Stock PAL Long Call PAL) Total PXL) 4 3 $4 33 2 1. 52 SI 0 50 Stock Price 45 50 55 49 -2 -3 46 45 STRATEGY: EXAMPLE: Synthetic Short Put Buy Stock 50 and Sell I S50 Call 2 SYNTHETIC SHORT PUT PAL) Stock Price at Expiration 55 Long Stock PAL) Short Call PAL) 5 Total PAL) 4 3 54 2 53 52 1 51 0 Stock Price 50 45 50 55 -11 49 -2 48 47 46 45 -5 These strategies are presented for educational purposes only. Transaction costs may make these impractical for individual investors. Page 17 Synthetic Positions STRATEGY: EXAMPLE: Synthetic Long Put Sell Stock Short 50 and Buy I S50 Call SYNTHETIC LONG PUT PAL) Stock Price at Expiration SS Short Stock PAL Long Call PAL) Total PXL) 4 3 $4 33 2 1. 52 SI 0 50 Stock Price 45 50 55 49 -2 -3 46 45 STRATEGY: EXAMPLE: Synthetic Short Put Buy Stock 50 and Sell I S50 Call 2 SYNTHETIC SHORT PUT PAL) Stock Price at Expiration 55 Long Stock PAL) Short Call PAL) 5 Total PAL) 4 3 54 2 53 52 1 51 0 Stock Price 50 45 50 55 -11 49 -2 48 47 46 45 -5 These strategies are presented for educational purposes only. Transaction costs may make these impractical for individual investors. Page 17