A synthetic put option on futures could be constructed by buying a call option on futures and selling the futures.

Question

Quizplus · Accepted Answer

This is known as a synthetic put option because it creates a payoff profile similar to that of a put option. If the price of the underlying asset decreases, the value of the futures contract decreases, but the value of the call option increases. The gains on the call option will offset the losses on the futures contract, resulting in a similar profit to a put option.

A Synthetic Put Option on Futures Could Be Constructed by Buying