Meaning PERFECT HEDGE: A situation in which the profit and loss from the underlying asset and the hedge position are equal
More terms such as Perfect hedge in Dictionary P.
- Definition Path-Dependent Option:
- Examples An option whose value depends on the sequence of prices of the underlying asset rather than just the final price of the asset perfect hedge definition.
- Definition Price Discovery Process:
- Examples The process of determining the prices of assets in the marketplace through the interactions of buyers and sellers perfect hedge explain.
- Definition Price Support:
- Examples Government intervention to set an artificially high price through the use of a price floor designed to aid producers perfect hedge what is.
- Definition Price Leadership:
- Examples A price charged by the dominant producer that becomes the price adopted by all the other producers perfect hedge meaning.
- Definition Principal-Only (PO):
- Examples security (MBS) whose holder receives only principal cash flows on the underlying mortgage pool. All the principal distribution due from the underlying collateral pool is paid to the registered holder perfect hedge abbreviation.
