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). Bloomberg Financial Dictionary
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. Bloomberg Financial Dictionary
See: intrinsic value of an option. Bloomberg Financial Dictionary
The theoretical number of warrants that give the right to either buy (for call warrants) or sell (for put warrants) one unit of the underlying security. (See also conversion ratio). Note, however that the minimun trading size is 1 warrant. NYSE Euronext Glossary

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parity par‧i‧ty [ˈpærti] noun parities PLURALFORM
1. [uncountable] the state of being the same as or equal to something else:
parity with

• The country is hoping to move toward economic parity with (= having the same wealth as ) the rest of Europe.

• The price cuts bring the company's prices into parity with those charged by AT&T.

ˈproduct ˌparity [uncountable]
MARKETING the similarity that people think exists between all the different kinds of a particular product:

• Perceptions of product parity are highest in markets like the US, where 220 different brands of breakfast cereal are available.

2. [uncountable] COMPUTING a system for finding mistakes when information is sent from one computer or another:

• Parity is used in many hardware applications where detecting an error is helpful.

3. [uncountable] FINANCE when one unit of a currency or commodity (= oil, metal, farm product etc ) is worth the same as one unit of another:

• Platinum prices could decline further, perhaps reaching parity with gold.

ˈswap ˌparity [uncountable] FINANCE
the rate at which an investment can be exchanged for another investment of the same kind:

• The swap parity was set at 85 shares in one company for every 100 shares in the other.

4. [countable] ECONOMICS a figure representing what a particular currency is worth in another currency at a particular time:

• One of the parities they will be checking is the dollar/​yen rate.

ˌfixed ˈparity [countable] ECONOMICS
the official value of one currency in relation to another, in a system where currencies are fixed against each other:

• National currencies were tied to the dollar in fixed parities.

ˈpurchasing ˌpower ˌparity abbreviation PPP [uncountable] ECONOMICS FINANCE
if two currencies have purchasing power parity, an amount of one country's currency needed to buy particular goods there will buy the same amount of goods in another country when exchanged into the currency of that country. This is used to see if currencies are correctly valued against each other on the currency markets:

• Most developing countries keep the exchange rates of their currencies low compared to purchasing power parity rate. This allows them to limit imports and stimulate exports.

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   Used loosely in the foreign exchange market to denote an exchange rate, e.g. the euro's parity against the dollar. Currencies are described as being at parity when their exchange rate is exactly one-to-one.

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parity UK US /ˈpærəti/ noun
[U] ECONOMICS, SOCIAL RESPONSIBILITY, WORKPLACE the state of being equal, especially in relation to pay and position: parity with sb »

In spite of many advances, women are far from achieving parity with men in many areas of employment.


The union is campaigning to win the nurses pay parity with the drivers.


They are confident that they will reach economic parity with other countries in the next decade.

[U] FINANCE, ECONOMICS a situation in which one unit of a currency has exactly the same value as one unit of another currency: »

The parity of the currencies has created a serious crisis in the trading figures.

at parity »

The peso was pegged to the US dollar at parity, so that one dollar equaled one peso.

[C] (plural parities) FINANCE, ECONOMICS a measurement of the value of one unit of currency in comparison with another: »

The different currencies are all legal tender within each country or bloc, but parities are variable.

the parity of sth against sth »

There was a 4% drop in the parity of the euro against the Swiss franc over the last twelve months.

See also FIXED PARITY(Cf. ↑fixed parity), INTEREST PARITY(Cf. ↑interest parity), PRODUCT PARITY(Cf. ↑product parity), PURCHASING POWER PARITY(Cf. ↑purchasing power parity)

Financial and business terms. 2012.

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