Specialists try to maintain a narrow bid$-$ask spread because:

If the spread is too large, they will not participate in as many trades, losing commission income.

The exchange requires specialists to maintain price continuity.

Specialists are nonprofit entities designed to facilitate market transactions rather than make a profit.

Multiple Choice

$1$ only

$1$ and $2$ only

$2$ and $3$ only

$1,2,$ and $3$