Parity

1. 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.
2. The official rate of exchange between two currencies, if there is one.
3. An exchange rate of 1 between two currencies.

See also

• Arbitrage
• Exchange rate
• Interest rate parity
• Outright
• Put-call parity theory
• Synthetic