Parity: Difference between revisions
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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]] instruments. | |||
2. | |||
The official rate of exchange between two currencies, if there is one. | |||
3. | |||
An exchange rate of 1 between two currencies. | |||
Revision as of 12:14, 11 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 instruments.
2.
The official rate of exchange between two currencies, if there is one.
3.
An exchange rate of 1 between two currencies.
