Which of the Following Statement Is FALSE Regarding Price Discovery

question 17

Multiple Choice

Which of the following statement is FALSE regarding price discovery in a futures market?

• A) As futures markets are believed to be semi-strong-form efficient,futures trading generates prices that reflect more information and provide better price forecasts.
• B) Price discovery has long been justified by regulators as a prime reason for the existence of futures markets.
• C) Futures markets can help discover prices in manipulated markets.
• D) Futures markets cannot play their price discovery role in times of extreme market volatility.
• E) Price discovery makes a futures market useful for planning output and input decisions in the production of goods.

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Definitions:

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Therapeutic interventions designed to reduce or eliminate emotional response to a stimulus by repeated exposure to it.

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