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Parity ratio |
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Parity ratioA measure of a warrant's 'moneyness' or intrinsic value.Similar MatchesInterest 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. DisparityDisparityInequality, usually income disparity. Central parityCentral parityPar value. Covered 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. Put call parity relationshipPut call parity relationshipThe relationship between the price of a put and the price of a call on the same underlying security with the same expiration date, which prevents arbitrage opportunities. Holding the underlying stock and buying a put will deliver the exact payoff as buying one call and investing the present value (PV) of the exercise price. The call value equals C = S + P - PV(k). Further SuggestionsInterest rate parity line (IRP)Parity Parity value Conversion parity price parity Absolute form of purchasing power parity Debt service parity approach Net parity Forward parity Spot futures parity theorem Gross parity Interest rate parity theorem Income disparity Interest rate parity line (IRP) Conversion parity Purchasing power parity exchange rate Relative form of purchasing power parity Purchasing power parity Covered interest parity Uncovered interest parity Purchasing power parity Conversion parity or value Purchasing power parity theory |
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