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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 happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe benefits and risks of derivative instruments
CFA® 2026 Level I Curriculum, Volume 5, Module 3.