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Lesson 37 of 90

Why do market makers prefer loan plus call option structures?

These structures offer asymmetric upside with limited capital outlay. The market maker can provide liquidity while retaining the ability to monetize volatility, directional price moves, or post-TGE appreciation through option exercise or secondary market trading. The embedded optionality makes these engagements attractive to large, sophisticated institutions that prefer to deploy their own capital and strategy rather than operate under a prescriptive mandate.

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