Derivatives Q37

0. While responding to criticism that derivatives can be destabilizing to the market, an analyst makes the following statements:
Statement 1: Market crashes and panics have occurred since long before derivatives existed.
Statement 2: Derivatives are sufficiently regulated that they cannot destabilize the spot market.
Which statement is most likely correct?

Answer
Comment
Array

Option : A
Explanation : Derivatives regulation is not more and is arguably less than spot market regulation. However, market crashes and panics have a very long history, much longer than that of derivatives.

Forgot your password?

I agree with the Terms.