Which of the Following Is Not True with Respect to Market

question 79

Multiple Choice

Which of the following is not true with respect to market makers?

• A)They benefit from the spread.
• B)They may earn profits when they take positions in options.
• C)They are not subject to the risk of loss on their positions in options.
• D)All of the above are true with respect to market makers.

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Definitions:

Kamakura Period

A period in Japanese history (1185–1333) marked by the rule of the Kamakura shogunate, known for its cultural developments and the establishment of the samurai as a dominant class.

Shunjobo Chogen

A prominent Japanese Buddhist monk and architect in the 12th century, known for introducing innovative construction techniques and rebuilding the Todai-ji temple in Nara.

Yamato-e Painting

A classical Japanese style of painting that focuses on Japanese subjects, characterized by vibrant colors and detailed depictions of courtly and seasonal themes.

Bright Mineral Pigments

Natural minerals used to produce vivid colors in paintings and other artworks.