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 ?
This is an industry where parity perceptions can be high or low depending on the customer.
In North Carolina, mental-health expenses have dropped every year since comprehensive parity for state and local employees was passed in 1992.
Rankings of EBV for first parity reproduction traits (NBA1, LTBW1, NPW1, and LTWW1) and sums from second to last parity traits (NBA2+, LTBW2+, NPW2+, and LTWW2+) were compared using Spearman's rank correlation coefficients obtained with the CORR procedure of SAS [12].
The 2008 legislation, which is known as the MHPAEA, and federal parity regulations do not require group health plans to cover behavioral health services.
is particularly important because it removes a technicality that plan administrators might raise to avoid being responsible when they make determinations that run afoul of federal parity laws.
The language of the MHPAEA describes parity for mental health and addiction treatment as a circumstance in which access to, authorization of, payment for, and ranges of treatment are "comparable to, or no more restrictive than" similar categories ofmedical or surgical treatment.
The investigators also created three categories of parity: full parity; partial parity which that requires that SUD coverage be offered but allows for some discrepancies between SUD coverage and comparable medical or surgical coverage; and "parity-if-offered," in which SUD coverage is not required to be offered but if offered, should be on a par with comparable medical and surgical coverage.
While risk parity focuses on volatility, tail risk parity focuses on measuring expected tail loss.
Most studies of parity have examined the entire population of enrollees, regardless of whether they have mental health or substance use disorders.
But increasingly on the continent, it's the defined contribution (DC) schemes that are taking the risk parity plunge.
10) Harlick claimed that Blue Shield was required to pay for the entirety of her treatment at Castlewood either because it was medically necessary residential treatment covered by her insurance plan, or, in the alternative, because the treatment had to be covered in accordance with the terms of the Parity Act.
RESULTS: Women with more sons than daughters were generally less likely than those with more daughters than sons to continue childbearing; parity progression driven by the desire for sons accounted for 7% of births.