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:

Health Maintenance Organizations

A type of health insurance plan that restricts members to receiving care from health care professionals and hospitals within the organization's network, often focusing on prevention and wellness.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.

Free Healthcare

A health service model where medical and hospital services are provided to individuals at no direct cost, typically funded by government taxes.

Affordable Care Act

A healthcare reform law enacted in March 2010, aimed at providing more Americans with access to affordable health insurance, improving the quality of healthcare and health insurance, and reducing healthcare spending in the US.