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Assuming perfect liquidity

A trading restriction could mean that you cannot short certain instruments, or that you cannot execute above/below certain volumes. For example in practice you cannot trade fractional numbers of a ...
Frido's user avatar
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1 vote

Conditions for market completeness

A market is said to be complete if every derivative can be hedged. You can find a discussion of this, e.g. in Shreve's Stochastic Calculus for finance II (chapter 5). The idea is that then you can ...
KT8's user avatar
  • 845

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