Explanation:
According to Hull, price limits are generally considered bad on balance because they can become an artificial barrier to trading.
Why C is correct:
Why the other options are wrong:
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Q-150.2. According to Hull, are price limits (i.e., limit up, limit down, and limit move) specified in a futures contract, on balance, good or bad?
A
a) No advantage or disadvantage ("no likely practical impact")
B
b) Good because they prevent large price moves due to speculation
C
c) Bad because they can become an artificial barrier to trading
D
d) Unclear because they both prevent large price moves but may become an artificial barrier