Abstract
In this chapter we develop extensions of the models in Chapter 6 by allowing the inclusion of hedged financial instruments in addition to the unhedged instruments. We recall that hedging refers to any type of strategy whose primary goal is to offset any investment risk. A perfect hedge reflects the elimination of the possibility of any gains or losses. Obviously, it is difficult, if not impossible, to accomplish perfect hedging.
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© 1997 Springer-Verlag Berlin Heidelberg
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Nagurney, A., Siokos, S. (1997). Static Single Country Hedging Models. In: Financial Networks. Advances in Spatial Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-59066-5_7
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DOI: https://doi.org/10.1007/978-3-642-59066-5_7
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-63835-0
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