单选题 The most likely reason derivative markets have flourished is that

A、 derivatives are easy to understand and use.
B、 derivatives have relatively low transaction costs.
C、 the pricing of derivatives is relatively straightforward.

【正确答案】 B

【答案解析】One reason derivative markets have flourished is that they have relatively low transaction costs. For example, buying a risk-free Treasury security and a futures contract on the S&P 500 Index to replicate payoffs to the index is cheaper than buying the 500 stocks in the index in their proper proportions to get the same payoff.