Parity: Difference between revisions
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imported>Doug Williamson (Classify page.) |
imported>Doug Williamson (Add example.) |
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An exchange rate of 1 between two currencies. | An exchange rate of 1 between two currencies. | ||
For example, GBP 1 = 1 USD | |||
Latest revision as of 13:21, 27 September 2022
1.
A relationship between market prices at which there are no opportunities for arbitrage.
Under parity, the prices of composite synthetic instruments are exactly the same as the prices of the related outright instruments.
2.
The official rate of exchange between two currencies, if there is one.
3.
An exchange rate of 1 between two currencies.
For example, GBP 1 = 1 USD
