Synthetic Call Vs. Protective Put

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Aren’t these 2 the same?
Both are specified as Long Stock + Long Put. Are there any differences?
Thanks
 
Start with the put-call parity:
Protective Put = Fiduciary Call
or
Long Stock + Long Put = Long Call + PV(X)
To replicate the Long Call, rearrange the equation.
Long Call = Long Stock + Long Put - PV(x)
Thus, a synthetic call is the equivalent of a protective put (long stock + long put) and a short bond with PV equal to the strike price.
 
I see what you saying about the put call parity and that is what I originally had in mind. However, Please look at page 442 int he book . 3.5 Synthetic Call. No mentioning of PV(x)…. it gives the impression that they are exactly the same thing. Thanks for your input
 
The reason why PV(x) isn’t mentioned is because its a minor factor for large movements in the stock price. So you can approximately the relationship without PV(x)
 
crocboss wrote: I see what you saying about the put call parity and that is what I originally had in mind. However, Please look at page 442 int he book . 3.5 Synthetic Call. No mentioning of PV(x)…. it gives the impression that they are exactly the same thing. Thanks for your input
Click to expand...
There is, in fact, a mention of PV(X): footnote 15.
 
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