Indicate which of the following statements about liquidity risk is (are) false and explain why:
A. Liquidity risk is more of a concern for the sellers of a security than for the buyers.
B. In general, derivatives can be used to substantially reduce the liquidity risk of a security.
C. Liquidity risk is usually observed in the size of the spread between the bid and ask prices of a security; the less liquid the security, the higher the bid-ask spread.