The Bid Price Is the Price Paid to Buy an Option

question 28

True/False

The bid price is the price paid to buy an option from a market maker.

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Definitions:

Nondiscriminatory Manner

Acting or making decisions without bias, unfairness, or discrimination towards any individual or group.

Worker Adjustment and Retraining Notification

A U.S. labor law requiring most employers with 100 or more employees to provide 60-day advance notification of plant closings and mass layoffs.

Plant Closing

The process of permanently shutting down a factory or business, often accompanied by layoffs of employees.

Mass Layoff

A significant reduction in a company's workforce initiated by the employer, affecting a large number of employees, often due to economic downturns or structural changes within the company.