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

  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