Market Makers Can Execute Stock Option Transactions for Customers and Do

question 45

True/False

Market makers can execute stock option transactions for customers and do not trade stock options for their own account.

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Definitions:

Market Equilibrium

A situation in which the supply of an item is exactly equal to its demand, leading to a stable market price.

Consumer Surplus

The discrepancy between the aggregate amount buyers are willing and capable of paying for a good or service versus what they really pay.

Market Supply

The total amount of a specific good or service available for purchase at any given price, from all producers combined.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting the good's sensitivity to price changes.