Conversion Parity Solution

STEP 0: Pre-Calculation Summary
Formula Used
Conversion Parity = (Nominal Value*Price)/(Number of Shares+Payment Per Share)
CP = (NV*P)/(NOS+PPS)
This formula uses 5 Variables
Variables Used
Conversion Parity - Conversion Parity refers to the equality between two different units of measurement or currencies.
Nominal Value - Nominal Value refers to the face value or stated value of an asset, security, or financial instrument.
Price - Price refers to the numerical value assigned to goods, services, or financial instruments in an exchange transaction.
Number of Shares - Number of Shares refers to the quantity of shares in the portfolio.
Payment Per Share - Payment Per Share refers to the amount of money distributed to shareholders for each share they own in a company.
STEP 1: Convert Input(s) to Base Unit
Nominal Value: 100 --> No Conversion Required
Price: 50 --> No Conversion Required
Number of Shares: 100 --> No Conversion Required
Payment Per Share: 1000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
CP = (NV*P)/(NOS+PPS) --> (100*50)/(100+1000)
Evaluating ... ...
CP = 4.54545454545455
STEP 3: Convert Result to Output's Unit
4.54545454545455 --> No Conversion Required
FINAL ANSWER
4.54545454545455 4.545455 <-- Conversion Parity
(Calculation completed in 00.004 seconds)
You are here -

Credits

Created by Aashna
IGNOU (IGNOU), India
Aashna has created this Calculator and 50+ more calculators!
Verified by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
Vishnu K has verified this Calculator and 200+ more calculators!

18 Banking Calculators

Annual Interest Rate with Discount
Go Annual Interest Rate with Discount = (Cash Discount Amount*360)/((Invoice Amount-Cash Discount Amount)*(Term for Payment-Cash Discount Period))
Optimal Ordering Frequency
Go Optimal Ordering Frequency = sqrt((Material Requirements*Acquisition Price*Stock Keeping Expense Ratio)/(2*Cost Per Order))
Optimal Lot Size
Go Optimal Lot Size = sqrt((2*Sales Volume*Cost Per Run)/(Stock Expense Ratio+Interest Expense Ratio))
Option Premium
Go Option Premium = ((Share Option Warrant/Number of Securities Per Option Warrant)+(Purchase Price*100/Price Security-100))
Calculative Interest
Go Calculative Interest = (Nominal Value*Price)/(Number of Shares+Payment Per Share)
Conversion Parity
Go Conversion Parity = (Nominal Value*Price)/(Number of Shares+Payment Per Share)
Liquidity
Go Liquidity = (Liquid Assets+Accounts Receivable+Stock)/Short Term Payables
Agio
Go Agio = (Purchase Price)+Option Warrant Price/Exchange Ratio-Share Price
Effective Cash Discount Rate
Go Effective Cash Discount Rate = (Cash Discount Rate*360)/(Term for Payment-Cash Discount Period)
Cash Value
Go Cash Value = Amount or Long Lease*(Annual Interest Rate)/(100+1)/(Annual Interest Rate/100)
Interest Earnings Per Quarter
Go Interest Earning Per Quarter = (Assets)/(Credit Balance)*(Key Interest Rate-2)/400
Outperformance Point
Go Outperformance Point = (Share Price)*(Expected Return Until Expiration+1)-Dividend
Commercial Interest
Go Commercial interest = (Deposits*Annual Interest Rate*Period in Days)/(100*360)
Capitalised Earning Value of Property
Go Capitalised earning value of a property = (Net Rental Return Per Annum*100)/Rate of Capitalisation
Calculative Deduction
Go Calculative Deduction = (Replacement Cost-Declining Value)/Period
Annual Rent of Annuity
Go Annual Rent of Annuity = (Seed Capital-Finish Capital)/Period
Interest Charges Per Quarter
Go Interest Charges Per Quarter = (Credit)*(Key Interest Rate+1)/400
Intrinsic Value
Go Intrinsic Value = Share Price-Base Value

Conversion Parity Formula

Conversion Parity = (Nominal Value*Price)/(Number of Shares+Payment Per Share)
CP = (NV*P)/(NOS+PPS)

What do you mean by Conversion Parity ?

Conversion Parity signifies the exchange rate between the entities. In the context of currencies, conversion parity indicates the exchange rate at which one currency can be exchanged for another. For instance, if the conversion parity between US dollars (USD) and euros (EUR) is 1:0.85, it means that 1 US dollar is equal to 0.85 euros. In financial markets, conversion parity can also apply to the relationship between different types of securities or assets. For example, in options trading, conversion parity refers to the condition where the theoretical value of a convertible security, such as a convertible bond or preferred stock, is equal to the value of the underlying asset if it were converted.

How to Calculate Conversion Parity?

Conversion Parity calculator uses Conversion Parity = (Nominal Value*Price)/(Number of Shares+Payment Per Share) to calculate the Conversion Parity, Conversion Parity is a fundamental concept used in various financial transactions and calculations to determine the relative value or exchange rate between different units or assets. Conversion Parity is denoted by CP symbol.

How to calculate Conversion Parity using this online calculator? To use this online calculator for Conversion Parity, enter Nominal Value (NV), Price (P), Number of Shares (NOS) & Payment Per Share (PPS) and hit the calculate button. Here is how the Conversion Parity calculation can be explained with given input values -> 4.545455 = (100*50)/(100+1000) .

FAQ

What is Conversion Parity?
Conversion Parity is a fundamental concept used in various financial transactions and calculations to determine the relative value or exchange rate between different units or assets and is represented as CP = (NV*P)/(NOS+PPS) or Conversion Parity = (Nominal Value*Price)/(Number of Shares+Payment Per Share). Nominal Value refers to the face value or stated value of an asset, security, or financial instrument, Price refers to the numerical value assigned to goods, services, or financial instruments in an exchange transaction, Number of Shares refers to the quantity of shares in the portfolio & Payment Per Share refers to the amount of money distributed to shareholders for each share they own in a company.
How to calculate Conversion Parity?
Conversion Parity is a fundamental concept used in various financial transactions and calculations to determine the relative value or exchange rate between different units or assets is calculated using Conversion Parity = (Nominal Value*Price)/(Number of Shares+Payment Per Share). To calculate Conversion Parity, you need Nominal Value (NV), Price (P), Number of Shares (NOS) & Payment Per Share (PPS). With our tool, you need to enter the respective value for Nominal Value, Price, Number of Shares & Payment Per Share and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
Let Others Know
Facebook
Twitter
Reddit
LinkedIn
Email
WhatsApp
Copied!