释义 |
Stock replacement strategy Stock replacement strategyA strategy for enhancing a portfolio's return, used when the futures contract is expensive according to its theoretical price. The strategy involves a swap between the futures and a Treasury bill and stock portfolio.Stock Replacement StrategyAn investment strategy where on buys derivatives to mimic the return on a stock. For example, one may buy deep-in-the-money options because increases in the share price on the underlying stock will likely result in equal increases in the price of the option. A stock replacement strategy seeks to make the same return for a lower cost and/or risk. See also: Synthetic Asset. |