Synthetic Positions Put Call Parity

objective

Execute option replication and parity workflows with deterministic calculations and production guardrails.

workflow

1. define contract specifications, carry assumptions, and financing conventions.
2. construct synthetic equivalents across calls, puts, underlier, and cash leg.
3. compute parity residuals with fees, dividends, borrow, and rate adjustments.
4. stress parity behavior under rate shifts, borrow spikes, and dividend uncertainty.
5. promote only when residuals and hedge equivalence remain stable across scenarios.

required diagnostics

• parity residual distribution by expiry and strike bucket.
• synthetic versus listed position pnl tracking error.
• financing and dividend sensitivity of residuals.
• borrow-cost impact on short-leg equivalence.
• residual persistence and mean-reversion behavior.