If a Stock Exchange Provides a Market for the Trade

Multiple Choice

If a stock exchange provides a market for the trade of specific share market-related derivative products,which of the following options is generally incorrect?

A) The derivative products provide an investment tool to take advantage of future share price movements.
B) The derivative products facilitate the management of risk within an existing share portfolio.
C) The derivative products provide protection against adverse movements in share prices.
D) The derivative products remove the share price volatility of stocks listed on the stock exchange.