Which of the following statements regarding Warren Buffett's views and experiences with derivatives is INCORRECT?
A) Buffett has characterized derivatives as "time bombs,both for the parties that deal in them and the economic system."
B) Buffett declared that all derivatives should be outlawed.
C) Under chairman Buffett's supervision,Berkshire Hathaway has written more than 200 long maturity derivatives on major indexes.
D) Buffett sold derivatives because he felt that these contracts were "mispriced at inception,sometimes dramatically so" and viewed them as similar to arbitrage opportunities.
E) Buffett's company is extensively involved in reinsurance-activities that are similar to trading put options.
Correct Answer:
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