--%>

Enough of complete markets

Where can we get incomplete markets?

E

Expert

Verified

The answer of this question is ‘everywhere.’ Practically, all markets are incomplete due to real-world effects which violate the assumptions of the easy models.

   Related Questions in Financial Management

  • Q : Theory of comparative advantage and

    How does the theory of comparative advantage associate to the currency swap market?Name recognition is very important in the international bond market. Without it, even a creditworthy corporation will determine itself paying higher interest rat

  • Q : Example to lay off the swap to an

    Suppose you are the swap bank in the Eli Lilly swap. Create an example of how you might lay off the swap to an opposing counterparty.The swap bank may attempt to lay off the swap on Japanese MNC which has issued yen denominated debt to finance

  • Q : Investing in the United States relative

    At the beginning of the year of 1996, the yearly interest rate was 6 percent in the United States and 2.8 percent in Japan. At the time the exchange rate was 95 yen per dollar. Mr. Jorus, the manager of a Bermuda-based hedge fund, thought that the substantial

  • Q : Describe a full definition of arbitrage

    Describe a full definition of arbitrage. Arbitrage can be described as the act of simultaneously buying & selling the similar or equivalent assets or commodities for the reason of making certain, guaranteed pro

  • Q : Corporation Briefly define the Terms

    Briefly define the Terms Corporation, partnership and proprietorship.

  • Q : Global financial market factors of the

    factors of the growth of the margin market in recent years

  • Q : What about exotic or over-the-counter

    What about exotic or over-the-counter (OTC) contracts?

  • Q : Explain normal distribution of random

    Illustrates an example to explain normal distribution of random numbers?

  • Q : What is Maximum Likelihood Estimation

    What is Maximum Likelihood Estimation?

  • Q : Foremost causes for Japan current

    On the contrary to the U.S., Japan has felt continuous current account surpluses. What could be the foremost causes for these surpluses? Is it desirable to have continuous current account surpluses? Japan's continu