Which of the Following Statements Regarding Warren Buffett's Views and Experiences

question 1

Multiple Choice

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.

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