parity investment & finance definition
Equality.
The term is used in the foreign exchange market to talk about two currencies’
parity with each other. For instance, as the exchange rate for the dollar and
euro both approach 1, they are said to be at parity.
See parity in Wall Street Words
The state of an option when its premium plus the strike price is equal to the market price of the underlying stock. If Amazon.com stock is selling at $17 per share, an option to buy the stock at $15 would be selling at parity if its premium is $2. See also
conversion parity.
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