Parity: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Layout.) |
imported>Doug Williamson (Classify page.) |
||
| Line 3: | Line 3: | ||
A relationship between market prices at which there are no opportunities for [[arbitrage]]. | 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. | |||
| Line 24: | Line 24: | ||
* [[Put-call parity theory]] | * [[Put-call parity theory]] | ||
* [[Synthetic]] | * [[Synthetic]] | ||
[[Category:The_business_context]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Manage_risks]] | |||
[[Category:Risk_frameworks]] | |||
[[Category:Risk_reporting]] | |||
[[Category:Financial_products_and_markets]] | |||
Revision as of 23:52, 14 August 2021
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.
