Resolution between laptop and monitor

I want to close my laptop and have my desktop displayed on a monitor so I can use a normal keyboard.

I have a new HP Envy 15 Notebook PC running Windows 7 Home Premium 64-bit that has a max resolution of 1920x1080. I have a new Acer monitor with a max resolution of 1920x1080. These are both connected via HDMI port.

When connected, the laptop screen looks fine and the picture on the monitor is the same, however there is a black/blank ring around the screen, even through the display settings on the laptop are maxed out to 1920x1080. Why is this? If I adjust the resolution on the laptop slightly smaller 1680x1050, the monitor goes full screen and is a little grainy and the laptop monitor has black gaps on the side.

Why cant my 1920x1080 Acer monitor display my 1920x1080 desktop on my laptop?