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Gross parity |
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Gross parityApplies mainly to convertible securities and international equities. Antithesis of net parity. For the price of a convertible, including accrued interest. For the price of international security, including commissions, fees, stamp duty, and other transaction costs, translated into U.S. dollar amounts.Gross parity Similar MatchesConversion parityConversion paritySee: Market conversion price Purchasing power parityPurchasing power parityThe notion that the ratio between domestic and foreign price levels should equal the equilibrium exchange rate between domestic and foreign currencies. Covered interest parityCovered interest parityEquality of returns on otherwise comparable financial assets denominated in two currencies, assuming that the forward market is used to cover against exchange risk. As an approximation, covered interest parity requires that i = i* + p where i is the domestic interest rate, i* is the foreign interest rate, and p is the forward premium. Interest rate parity theoremInterest rate parity theoremExpression that the interest rate differential between two countries is equal to the difference between the forward foreign exchange rate and the spot rate. Relative form of purchasing power parityRelative form of purchasing power parityTheory that the rate of change in the prices of products should be somewhat similar, but not absolutely the same when measured in a common currency, as long as transportation costs and trade barriers are unchanged. Further SuggestionsAbsolute form of purchasing power parityDisparity Forward parity Purchasing power parity Spot futures parity theorem Purchasing power parity exchange rate Conversion parity or value Covered Interest Rate Parity Interest parity Parity value Debt service parity approach Parity Purchasing power parity theory Central parity Net parity Income disparity Interest rate parity line (IRP) Conversion parity price Put call parity relationship parity ratio Uncovered interest parity Interest rate parity line (IRP) parity |
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