Which of the Following Statements Is NOT True About Derivatives

Multiple Choice

Which of the following statements is NOT true about derivatives?

A) Derivatives are a newcomer to financial markets in the past fifty years.
B) Derivatives help to complete markets.
C) Derivatives are regulated by either the Securities and Exchange Commission or the Commodity Futures Trading Commission.
D) Derivatives usually require models to determine hedge ratios.
E) Derivatives can be used incorrectly if not well understood.