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How does industry people synthetic long term put option

Posted: October 20th, 2003, 7:36 pm
by Samxq
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.

How does industry people synthetic long term put option

Posted: October 21st, 2003, 9:43 am
by FDAXHunter
Take out an OTC option.

How does industry people synthetic long term put option

Posted: October 21st, 2003, 10:11 am
by Rouletabille2
"I am selling a put option"So you are buyer.... humm...let me re-parametrize my pricer, dear customer...