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 upon only as an equity instrument . ( conversion ratio x common price.) See: conversion value . For international parity, US$ price of a foreign stock's last sale in an overseas market . (local currency stock price x forex rate x A.D.R. 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.