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Basic Question 4 of 5
Financial derivatives contribute to market completeness by ______.
B. increasing the number of possible payoffs
C. increasing the number of investors participating in the market
A. reducing transaction costs
B. increasing the number of possible payoffs
C. increasing the number of investors participating in the market
User Contributed Comments 3
| User | Comment |
|---|---|
| Vikku | Could someone pls elaborate with an example? |
| georgek | the definition of market completeness the answer elaborated is interesting as it also implied the reduction of txn costs given the combination with other instruments? |
| ankurwa10 | What did i say in my comment to the previous question :P |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe benefits and risks of derivative instruments
CFA® 2025 Level I Curriculum, Volume 5, Module 3.