3. Which of the following responds to the criticism that derivatives can be destabilizing to the underlying

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3. Which of the following responds to the criticism that derivatives can be destabilizing to the underlying market?

A. Market crashes and panics have occurred since long before derivatives existed.

B. Derivatives are sufficiently regulated that they cannot destabilize the spot market.

C. The transaction costs of derivatives are high enough to keep their use at a minimum level.

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Derivatives

ISBN: 9781119850571

1st Edition

Authors: CFA Institute

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Question Posted: Oct 23, 2024 08:04 AM

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3. Which of the following responds to the criticism that derivatives can be destabilizing to the underlying

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Derivatives

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