Question: How do market makers make profits in both exchange - traded and over - the - counter derivative markets, and what specific strategies do they
How do market makers make profits in both exchangetraded and overthecounter derivative markets, and what specific strategies do they employ for this purpose? Explain the rationale behind their pricing approach and risk management, and also address whether commissions play a role in their profit mechanism.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
