Parity


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Parity

For convertibles, level at which a convertible security's market price equals the aggregate value of the underlying common stock; value/worth of the convertible bond considered only as an equity instrument (Conversion ratio times common price). See: Conversion value. For international parity, U.S.$ price of a foreign stock's last sale in an overseas market (Local currency stock price times forex rate times ADR ratio). For listed parity, condition whereby no party has floor priority, and matching thus occurs. For options parity, dollar amount by which an option is in the money. See: Intrinsic value.

Parity

1. The state of being equal. Parity is used in a variety of contexts. For example, parity is achieved when the value of a convertible security equals the value of the underlying common stock.

2. A situation in which the total of the premium and the strike price of an option are equal to the market value of the underlying asset. For example, if the premium is $5 per share and the strike is $10, then parity is achieved when the market value of the underlying is $15 per share. See also: At-the-money.

3. See: Par.

parity

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.
References in periodicals archive ?
called the ruling a "major turning point for mental health parity in the United States.
Treatment providers can use NAATP's Parity Survey tool to simplify the process of reporting parity-related issues.
Major finding: Substance use disorder (SUD) parity laws were associated with a 9% increase (P less than .
Finally, we study the 2007 Oregon state parity law, which has important similarities to the MHPAEA.
This study also compares, at each parity, the sex ratio at birth of the last-born child of women who stopped childbearing with the corresponding ratio for women who continued to the next parity.
The three agencies writing the implementation regulations for the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 are the Department of Health & Human Services, the Department of Treasury, and the Department of Labor.
Parity supporters believe that the law will help people think of addiction treatment in the same way they think of other medical care, thereby reducing stigma and making services more affordable.
Matthews never wanted funding parity and completion to come at the price of Catholic identity in the schools.
NZNO'S petition calling for pay parity for primary health care (PHC) nurses, signed by more than 18,000 people, was presented to Labour MP Maryan Street, standing in for Health Minister Pete Hodgson, and chair of Parliament's Health Select Committee, Green MP Sue Kedgley on the steps of Parliament on December 15.
The enhancement factor of a million observed in the 1980s in compound nucleus parity violating observables stimulated great interest in searching for time reversal violation.
A disk array composed of no more than 8 hard disks with RAID 5 single parity capability appears to be highly reliable.
If farmers were getting at least a near parity figure for their products they would put a steady stream of debt-free money into the economy.