What is the perfect or imperfect hedge

Reference no: EM131458000

Question: Suppose that after you graduate, you plan to be a stock analyst for a major financial institution. You know that if the stock market increases in value, you will get a job with a good salary. If the stock market declines, you will get a job, but the salary will be lower. How can you hedge your salary risk using futures contracts? Is this a perfect or imperfect hedge?

Reference no: EM131458000

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