Which of the Below Statements Is FALSE

Multiple Choice

Which of the below statements is FALSE?

A) While the degree of leverage available in the futures market varies from contract to contract, as the initial margin requirement varies, the leverage attainable is considerably greater than in the cash market.
B) Futures markets can be used to reduce price risk.
C) The exchange does not have the right to impose a limit on the daily price movement of a futures contract from the previous day's closing price.
D) The rationale offered for the imposition of daily price limits is that they provide stability to the market at times when new information may cause the futures price to exhibit extreme fluctuations.