The derivatives market is characterized by:
A)Stability
B)Innovation
C)Riskiness
D)Private deals

Question

Quizplus · Accepted Answer

The derivatives market is known for innovation, as it involves the creation of new financial products that allow individuals and organizations to manage risk, hedge against adverse events, and speculate on market movements. The market can also be risky, as the value of derivative products is often highly sensitive to changes in underlying assets or market conditions. While private deals do occur in the derivatives market, it is also highly regulated and transparent in order to mitigate these risks. Therefore, neither stability nor private deals are accurate characterizations of the derivatives market.

The Derivatives Market Is Characterized By