How does industry people synthetic long term put option

Samxq · October 20th, 2003, 7:36 pm

In a project, I have a long term liability which payoff like I am selling a put option. However, there is not a put option in the market has such a long maturity, say 10 years. If I have to hedge my liability, how do I synthetic a put option in a cost effective way.

FDAXHunter · October 21st, 2003, 9:43 am

Take out an OTC option.

Rouletabille2 · October 21st, 2003, 10:11 am

"I am selling a put option"So you are buyer.... humm...let me re-parametrize my pricer, dear customer...