It cannot be derived from the text that

(A) the advantage of forward contracts is that they are standardized and their market is illiquid.

(B) financial futures can be used both to hedge and to speculate.

(C) futures trading is a zero-sum game, because the amount of money gained by one party will be the same as the sum lost by the other.

(D) stock index futures can be used to hedge stock market risk by reducing systematic risk in portfolios or by locking in stock prices.

9. Which of the following statements would the author most probably disagree with?

(A) Financial assets fluctuate so financial futures are used to fix a value for the present date.

(B) Futures trading is a zero-sum game, because the amount of money gained by one party will be the same as the sum lost by the other.

(C) The buyer and the seller of a financial futures contract have different opinions about what will happen to exchange rates, interest rates and stock prices.

(D) Buyers and sellers of financial futures contracts are both taking unlimited risk, because there could be huge changes in rates and prices during the period of the contract.

10. What is most likely the subject of the extract which is missing from this text?

(A) credit derivatives

(B) asymmetric information

(C) asset management

(D) credit rating agencies