Which of the Following Statements Is NOT True About Derivatives

question 14

Multiple Choice

Which of the following statements is NOT true about derivatives?

• A) Derivatives are a newcomer to financial markets in the past fifty years.
• B) Derivatives help to complete markets.
• C) Derivatives are regulated by either the Securities and Exchange Commission or the Commodity Futures Trading Commission.
• D) Derivatives usually require models to determine hedge ratios.
• E) Derivatives can be used incorrectly if not well understood.

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