Which of the Following Statements Regarding Why No Futures Market

Multiple Choice

Which of the following statements regarding why no futures market exists for diamonds is INCORRECT?

A) Diamond sellers,led by South African diamond manufacturing conglomerate De Beers,have acted as an effective cartel.
B) Diamonds are hard to standardize.
C) Price volatility is largely controlled by the De Beers-led cartel,which kills any incentive for hedgers and speculators to participate.
D) There is no hedging demand from firms using diamonds for jewelry production.
E) Given the market structure,a futures contract fails to play a price discovery role in the diamond market.