financial contagion在哪儿讲到了呀

问题如下：

Derivatives may contribute to financial contagion because of the:

选项：

A.

centrally cleared nature of OTC derivatives.

B.associated significant costs and high capital requirements.

C.

reliance by derivatives speculators on large amounts of leverage.

解释：

C is correct. Opponents argue that speculators use large amounts of leverage, thereby subjecting themselves and their creditors to substantial risk if markets do not move in their hoped-for direction. Defaults by speculators can then lead to defaults by their creditors, their creditors’ creditors, and so on. These effects can, therefore, be systemic and reflect an epidemic contagion whereby instability can spread throughout markets and an economy, if not the entire world.

A is incorrect because central clearing of OTC derivatives, similar to how exchange-traded derivatives are cleared, is intended to lessen the risk of contagion.

B is incorrect because it is derivatives’ low cost and low capital requirements, not high cost and high capital requirements, that opponents point to as contributing to an excessive amount of speculative trading that brings instability to the markets.