|
Perfect hedge |
|
|
|
Home Site Map Add Term Search About Us Contributors |
Perfect hedgeA situation in which the profit and loss from the underlying asset and the hedge position are equal.Perfect hedge Similar MatchesPerfect foresightPerfect foresightExact knowledge of the future. Under perfect foresight, for example, the forward rate would exactly equal the spot rate that later prevails when the forward contract matures. 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. Imperfect competitionImperfect competitionAny departure from perfect competition. However, imperfect competition usually refers to one of the market structures other than perfect competition. Perfectly mobile capitalPerfectly mobile capitalPerfect capital mobility. Perfect substitutePerfect substituteA good that is regarded by its demanders as identical to another good, so that the elasticity of substitution between them is infinite. Further SuggestionsImperfectly competitivePerfect forecast line Perfect capital market Perfect competition Perfecting Title Expected value of perfect information Perfect competition Market imperfection Perfect market assumptions Perfectly competitive Perfect capital mobility Perfectly competitive financial markets Perfect market view (of dividend policy) Imperfect market Capital market imperfection Perfected first lien |
|
|
|