Parity: Difference between revisions
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The official rate of exchange between two currencies. | #A relationship between market prices at which there are no opportunities for arbitrage. The prices of composite synthetic instruments are exactly the same as the prices of the related outright instrument. | ||
#The official rate of exchange between two currencies, if there is one. | |||
#An exchange rate of 1 between two currencies. | |||
== See also == | == See also == | ||
* [[Arbitrage]] | |||
* [[Exchange rate]] | * [[Exchange rate]] | ||
* [[Interest rate parity]] | * [[Interest rate parity]] | ||
* [[Outright]] | |||
* [[Put-call parity theory]] | |||
* [[Synthetic]] |
Revision as of 17:33, 4 May 2016
- A relationship between market prices at which there are no opportunities for arbitrage. The prices of composite synthetic instruments are exactly the same as the prices of the related outright instrument.
- The official rate of exchange between two currencies, if there is one.
- An exchange rate of 1 between two currencies.