Put-Call Parity

Business / Finance / Put-Call Parity: Applies to derivative products. Option pricing principle that says, given a stock's price, a put and call of the same class must have a static price relationship because arbitrage opportunities or activities will always reestablish such a relationship.

Other Words for Parity

Parity Noun Synonyms: equality, equivalence, consistency, uniformity, par, likeness, similarity, analogy, congruity, similitude, conformity, congruence
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Business / Finance / Purchasing Power Parity: The notion that the ratio between domestic and foreign price levels should equal the equilibrium exchange rate between domestic and foreign currencies. MORE

Parity Value

Business / Finance / Parity Value: Related: Conversion value MORE

Parity Ratio

Business / Agriculture / Parity Ratio: The ratio of the prices received index, 1910-14=100, to the prices paid index on a 1910-14=100 base (called the parity index). The parity ratio is a measure of relative price relationships. It is not MORE

Put-Call Parity

Business / Finance / Put-Call Parity: Applies to derivative products. Option pricing principle that says, given a stock's price, a put and call of the same class must have a static price relationship because arbitrage opportunities or act MORE

Put-Call Parity Relationship

Business / Finance / Put-Call Parity Relationship: The 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 MORE

Spot Futures Parity Theorem

Business / Finance / Spot Futures Parity Theorem: Exchange rate on currency for immediate delivery. Related: Forward exchange rate. MORE