1. Derivative markets make stock and bond markets less efficient.

True

False

2. Derivatives permit investors to manage their risk more efficiently.

True or false

3. An investment banking company is not allowed to find targets for the client in an acquisition.

True

False

4.  In 2004, CBOE introduced the first exchange-traded VIX futures contract on The CBOE Futures Exchange (CFE). Two years later in February 2006, CBOE launched VIX options. These VIX options and futures are popular because they are highly negatively correlated with the stock market.

True

False