$1.$ Which of the following statements with regard to derivatives are correct?

i$.$ Derivatives are leveraged investments, as only a small initial outlay is needed.

ii$.$ Derivatives prices are less volatile than the prices of the underlying assets.

iii. Derivatives contracts can be based on non$-$financial variables such as the weather.

iv$.$ Derivatives can be used to reduce the risk of holding a market position.

$($a $)($i$)$ and $($iii$)$ only

$($b $)($i$),($ii$)$ and $($iv$)$ only

$($c $)($i$),($iii$)$ and $($iv$)$ only

$($d $)($ii$),($iii$)$ and $($iv$)$ only

$($e $)$ None of the above