The term "parity" refers to equality. Thus, parity price is a price for an asset that is directly linked to another price. Examples of parity price are:
1. Convertibles - the price at which a convertible security equals the value of the underlying stock.
2. Options - when an option is trading at its intrinsic value ("trading at parity").
3. International parity - official rates for a currency in terms of other pegged currencies, typically the U.S. dollar.
4. Commodities - a commodity's price dependent on a composite of prices during a period of time, usually the most recent 10-year period.
5. Listed parity - situation when all parties involved are of equal standing and priority.
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