Perfect hedge

A financial result in which the profit and loss from the underlying asset and the hedge position are equal. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • Perfect Hedge — A position undertaken by an investor that would eliminate the risk of an existing position, or a position that eliminates all market risk from a portfolio. In order to be a perfect hedge, a position would need to have a 100% inverse correlation… …   Investment dictionary

  • perfect hedge — A situation in which the profit and loss from the underlying asset and the hedge position are equal. Bloomberg Financial Dictionary …   Financial and business terms

  • perfect hedge — Fin a hedge that exactly balances the risk of another investment …   The ultimate business dictionary

  • Hedge — Making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract. An example of a hedge would be if you owned a stock,… …   Investment dictionary

  • Perfect 10 — was a quarterly men s magazine featuring high resolution photographs of topless or nude women who have not had cosmetic surgery and focused in particular on slender models with piercing eyes and medium to large, youthful breasts in pensive or… …   Wikipedia

  • hedge effectiveness — The extent to which a hedge transaction results in the offsetting changes in value or cash flow that the transaction was and is intended to provide. FAS 133 requires users to regularly assess the effectiveness of hedges. Furthermore, under FAS… …   Financial and business terms

  • A Perfect Murder — Infobox Film name = A Perfect Murder caption = Theatrical release poster director = Andrew Davis producer = Arnold Kopelson Anne Kopelson Peter Macgregor Scott Christopher Mankiewicz writer = Patrick Smith Kelly starring = Michael Douglas Gwyneth …   Wikipedia

  • hedging — The practice of offsetting the price risk inherent in any cash market position by taking an equal but opposite position in the futures market. Hedgers use the futures markets to protect their business from adverse price changes. Selling ( Short)… …   Financial and business terms

  • basis risk — The risk to a holder of financial instruments that a change in prevailing interest rates will not affect the prices of or yields on similar instruments in exactly equal amounts. For example, an increase in prevailing interest rates might raise 3… …   Financial and business terms

  • Charles E. Moore — (right) with Senator Harry S. Truman at the Joshua Hendy Iron Works in 1942 Born 1894 San Bernardino, California Died …   Wikipedia

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