In Financial Markets, When Does Asymmetric Information Exist

Multiple Choice

In financial markets, when does asymmetric information exist?  

A)  when one party to a transaction has more knowledge of relevant details than the other party 
B)  when lenders know more about the borrowers than the borrowers know about themselves 
C)  when all parties to a transaction have exactly the same information 
D)  when all the information held by the parties is inaccurate