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Parity value |
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Parity valueRelated: Conversion valueParity value 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. Spot futures parity theoremSpot futures parity theoremDescribes the theoretically correct relationship between spot and futures prices. Violation of the parity relationship gives rise to arbitrage opportunities. Interest rate parity line (IRP)Interest rate parity line (IRP)Diagonal line on a graph that characterizes interest rate parity. Absolute form of purchasing power parityAbsolute form of purchasing power parityA theory that prices of products of two different countries should be equal when measured by a common currency. Also called the "law of one price." 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 SuggestionsIncome disparityparity ratio Covered interest parity Purchasing power parity Interest rate parity theorem Conversion parity Purchasing power parity Interest rate parity line (IRP) Forward parity Net parity Parity Conversion parity or value Put call parity relationship parity Purchasing power parity theory Disparity Interest parity Gross parity Central parity Debt service parity approach Purchasing power parity exchange rate Uncovered interest parity Conversion parity price |
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