Which combination replicates a synthetic LONG stock (ignoring rates/dividends)?

Long call + short put (same strike/expiry). Put–call parity: S ≈ C − P.

Which combo replicates a synthetic SHORT stock?

Short call + long put (same strike/expiry). Synthetic short stock ≈ P − C.

A 'conversion' position generally consists of:

Long call, short put, short stock (same K,T).

Dividend expectations affect parity by:

Replacing S with S − PV(dividends) in parity.

Which is TRUE about American options and parity?

Early exercise features can distort naive European parity bounds.

A 'jelly roll' typically refers to:

A calendarized conversion/reversal capturing carry between expiries.

Synthetic covered call equals:

Short put (same strike/expiry).

Quiz

Put–Call Parity & Synthetics Quiz

EducOptions

Last updated: October 8, 2025

13 Min Read

Risk Warning: Trading options involves a high level of risk and may not be suitable for all investors. All information on EducOptions.com is for educational purposes only and does not constitute financial advice.

Test your mastery of Put–Call Parity & Synthetics Quiz. This hands-on quiz covers conversions vs. reversals, boxes, jelly rolls, and how dividends/rates shift parity. Each question includes a short explanation so you learn as you go — perfect for traders who want to reason from parity instead of memorizing patterns.