Most of the Evidence to Date Indicates That Firms with Which

Multiple Choice

Most of the evidence to date indicates that firms with which two of the following characteristics are most apt to frequently use derivatives?

A) Low financial distress costs and constrained access to capital markets
B) Small in size and low financial distress costs
C) Easy access to capital markets and high financial distress costs
D) High financial distress costs and constrained access to capital markets
E) High financial distress costs and easy access to capital markets