|
|
Net parity |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Net parityAntithesis of gross parity. Convertibles: Price of a convertible security including accrued interest. International: Price of international security including commissions, fees, stamp duty, and other transaction costs, translated into U.S. dollar amounts.Net parity Similar MatchesConversion parityConversion paritySee: Market conversion price Interest parityInterest parityEquality of returns on otherwise identical financial assets denominated in different currencies. May be uncovered, with returns including expected changes in exchange rates, or covered, with returns including the forward premium or discount. Also called interest rate parity. Purchasing power parityPurchasing power parity1. The equality of the prices of a bundle of goods (usually the CPI) in two countries when valued at the prevailing exchange rate. Called absolute PPP. 2. The equality of the rates of change over time in the prices of a bundle of goods in two countries when valued at the prevailing exchange rate. Called relative PPP. Implies that the rate of depreciation of a currency must equal the difference between its inflation rate and the inflation rate in the currency to which it is being compared. Forward parityForward parityNotion that the forward rate is an unbiased predictor of future spot exchange rates. Interest rate parity line (IRP)Interest rate parity line (IRP)Diagonal line on a graph that characterizes interest rate parity. Further SuggestionsCentral parityCovered interest parity Parity parity Interest rate parity theorem Conversion parity or value Disparity Conversion parity price Purchasing power parity exchange rate Absolute form of purchasing power parity Income disparity Purchasing power parity theory Spot futures parity theorem Gross parity Debt service parity approach parity ratio Uncovered interest parity Parity value Covered Interest Rate Parity Relative form of purchasing power parity Purchasing power parity Put call parity relationship Interest rate parity line (IRP) |
|
|
|