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 indicated that the higher replacement rate for L, Y, and crossbred sows, the lower the feasibility of choosing sows with low EBV for reproduction traits in the first parity but low EBV for sums of reproduction traits in the second and later parities.
Genetic parameters for litter size and weight at different parities in Iberian pigs.
A binary variable was included that indicated whether a woman had lost one or more children from prior parities at least 12 months before the birth of the last-born child.
Women who have more sons than daughters at earlier parities will stop childbearing and thus have smaller families.
Across all parities, the desire to have another child generally declined as the number of sons increased.