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Perfect hedge |
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Perfect hedgeA situation in which the profit and loss from the underlying asset and the hedge position are equal.Perfect hedge Similar MatchesPerfectly competitive financial marketsPerfectly competitive financial marketsMarkets in which no trader has the power to change the price of goods or services. Perfect capital markets are characterized by certain conditions: (1) Trading is costless, and access to the financial markets is free; (2)information about borrowing and lending opportunities is freely available; and (3) there are many traders, and no single trader can have a significant impact on market prices. Perfectly elasticPerfectly elasticRefers to a supply or demand curve with a price elasticity of infinity, implying that the supply or demand curve as usually drawn is horizontal. A small open economy faces perfectly elastic demand for its exports and supply of its imports, and a foreign offer curve that is a straight line from the origin. Perfect competitionPerfect competitionAn idealized market structure in which there are large numbers of both buyers and sellers, all of them small, so that they act as price takers. Perfect competition also assumes homogeneous products, free entry and exit, and complete information. Most international trade theory prior to the New Trade Theory assumed perfect competition. Perfect capital mobilityPerfect capital mobility1. The absence of any barriers to international capital movements. 2. The requirement that, in equilibrium, rates of return on capital (interest rates) must be the same in different countries. Market imperfectionMarket imperfectionAny departure from the ideal benchmark of perfect competition, due to externalities, taxes, market power, etc. Further SuggestionsPerfect market assumptionsPerfectly mobile capital Imperfectly competitive Perfect foresight Imperfect market Imperfect competition Perfect competition Perfected first lien Capital market imperfection Expected value of perfect information Perfect forecast line Perfectly competitive Perfect market view (of dividend policy) Perfect capital market Perfecting Title Perfect substitute |
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