The official determination of the value of a currency against an underlying benchmark, such as 1 EUR = 1.180690 Special Drawing Rights. The exchange rate, as the price formed by the interplay of supply and demand, may deviate from this to a greater or lesser extent and for a greater or lesser period of time. – In the case of convertible bonds, the conversion ratio determines how many shares can be subscribed per bond. Multiplied by the current share price, the parity is obtained, namely the market value of the convertible bond. – Equality between prices of commodities or assets in two separate markets. – In the case of an option, the same value of a put option and a call option, based on the same underlying and expiration date (a static price relationship between the prices of put and call options of the same class, i.e. same underlying, strike price and expiration date). – See devaluation, revaluation, death spiral.
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