Which of the following are advantages of derivatives?
A)lower transaction costs than securities and commodities
B)reveal information about expected prices and volatility
C)help control risk
D)make spot prices stay closer to their true values
E)all of the above

Question

Quizplus · Accepted Answer

All of the above advantages are associated with derivatives. They have lower transaction costs than securities and commodities, reveal information about expected prices and volatility, help control risk, and make spot prices stay closer to their true values.

Which of the Following Are Advantages of Derivatives