A synthetic instrument is a term in metrology (test and measurement science). A Synthetic Instrument is software that runs on a Synthetic Measurement System to perform a specific synthesis, analysis, or measurement function. Sandwiched between them is the device under test (DUT) that is being measured.

Synthetic a priori proposition, in logic, a proposition the predicate of which is not logically or analytically contained in the subject—i.e., synthetic—and the truth of which is verifiable independently of experience—i.e., a priori. …

You can create a synthetic coupon bond from a portfolio of zero-coupon bonds. The portfolio is constructed so that the cash flows from the face amounts of the portfolio of zero-coupon debt contracts exactly replicate the cash flows from ten coupon bonds.

Traders create a synthetic long asset by purchasing at-the-money (ATM) calls and then selling an equivalent number of ATM puts with the same date of expiration. Synthetic long assets come with an unlimited amount of risk; however, they also offer an unlimited potential profit.

The synthetic short stock is an options strategy used to simulate the payoff of a short stock position. It is entered by selling at-the-money calls and buying an equal number of at-the-money puts of the same underlying stock and expiration date.

The concept synthetic asset refers to a collection of assets that have the same value as another asset. Traditionally, synthetic products combine various derivatives — options, futures, or swaps — that mimic the underlying asset — stocks, bonds, commodities, indices, currencies, or interest rates.

Synthetic Equity Defined: Synthetic equity is an executive compensation program granting an executive with the right to a defined amount of enterprise value with no buy-in cost to the executive.

An investment that replicates, or attempts to replicate, the cash flows incident to ownership of an asset (usually a security, basket of securities, index, or other financial instrument). An investment is said to be synthetic where there is no ownership of the underlying asset.

Synthetic indices, also known as volatility indices, are simulated markets, which means they are not affected by world events. They act like real monetary markets but have been created with the help of numbers that are randomly generated through a computer programme.

Equity swaps (and other equity derivatives) provide synthetic exposure to physical equities. In an equity swap, the return on the underlying share is exchanged for a return based on a reference interest rate or yield.

An equity swap is similar to an interest rate swap, but rather than one leg being the “fixed” side, it is based on the return of an equity index. These swaps are highly customizable and are traded over-the-counter.

So-called “synthetic prime brokerage” is a means of institutionalizing the TRS-based delivery of leverage to hedge funds from prime brokers. Generally in a synthetic prime brokerage arrangement, a prime broker establishes an account that is “advised” by a hedge fund manager.

Bullet swaps: The proposed regulations provide that fixing an amount due under a contract is treated as a “payment” for purposes of the rule that at least one leg of a notional principal contract must provide for a series of two or more “payments.” An example provides that a bullet swap is a notional principal contract …