P
Parity Graph
P
Parity Graph
A representation of the value of a
financial instrument
when any
premium
from the
insurance
value of an
option
or the
basis
of a
forward
or
futures contract
has been eliminated by the passage of time-a valuation at expiration or in exercise. The hockey
-stick
diagram of option
payouts
at
maturity
are parity graphs.
Glossary
*
P