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Net parity |
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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 MatchesCovered Interest Rate ParityCovered Interest Rate ParityThe principle that the yields from interest-bearing foreign and domestic investments should be equal when the forward currency market is used to predetermine the domestic currency payoff from a foreign investment. Uncovered interest parityUncovered interest parityEquality of expected returns on otherwise comparable financial assets denominated in two currencies, without any cover against exchange risk. Uncovered interest parity requires approximately that i = i* + a where i is the domestic interest rate, i* the foreign interest rate, and a the expected appreciation of foreign currency at an annualized percentage rate. Interest rate parity line (IRP)Interest rate parity line (IRP)Diagonal line on a graph that characterizes interest rate parity. Income disparityIncome disparityInequality of income, usually referring to differences in average per capita incomes across countries. Central parityCentral parityPar value. Further SuggestionsInterest rate parity theoremSpot futures parity theorem Purchasing power parity Forward parity Interest parity Conversion parity price Disparity Gross parity parity ratio Parity value Purchasing power parity theory Conversion parity or value Absolute form of purchasing power parity Purchasing power parity Relative form of purchasing power parity Conversion parity Interest rate parity line (IRP) Parity Put call parity relationship Purchasing power parity exchange rate Debt service parity approach parity Covered interest parity |
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