Which of the following statements is INCORRECT?
A) Derivatives trade in zero net supply markets.
B) A derivatives trade is a zero-sum game in the absence of market imperfections like transaction costs.
C) Derivatives are powerful financial tools that can be used for speculation as well as hedging.
D) Derivatives have a history of always causing significant losses to any trader who trades these contracts.
E) Derivatives can help traders to reduce price risk from economic activities.
Correct Answer:
Verified
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