Which of the following statements about the financial derivatives is correct? Financial futures and options protect the investments against inflation and deflation in the economy. Financial futures and options provide protection against the increasingly volatility of stock prices, exchange rates, and interest rates, but they are not suited for speculation. A reason for their popularity is that their trading is restricted to government and agency securities which reduces risks of government obligations. Financial futures and options provide protection against the increasingly volatility of stock prices, exchange rates, and interest rates, and they may also be used for speculation. All of the above are true statements