27.08.2010 - Spinning synthetic gold
From Hardassetsinvestor.com: According to the Brothers Grimm fairy tale, Rumpelstiltskin could spin straw into gold. Investors can do the same. Not literally, mind you, but one can obtain a long gold position (or a proxy position in gold futures, a gold trust or a mining stock) without actually touching bullion, futures or stock. It's done through the options market. A so-called synthetic long gold position combines the purchase of a call with the simultaneous short sale of a put, where both options share the same exercise price and expiration date. The position mimics a long gold position's potential risks and rewards..............................................Full Article: Source
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