Which of the following statements is FALSE?
A) Derivatives help shift risk from risk-adverse investors to risk-takers.
B) Derivatives assist in forming cash prices.
C) Derivatives provide additional information to the market.
D) In many cases, the investment in derivatives (both commissions and required investment) is more than in the cash market.
E) Some derivatives trade hypothetical underlying assets.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is FALSE?
A) Derivatives help shift risk from risk-adverse investors to risk-takers.
B) Derivatives assist in forming cash prices.
C) Derivatives provide additional information to the market.
D) In many cases, the investment in derivatives (both commissions and required investment) is more than in the cash market.
E) Some derivatives trade hypothetical underlying assets.

Which of the Following Statements Is FALSE