Which of the Following Statements Is false

question 15

Multiple Choice

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) None of the above (that is, all are reasons)