Final answer:
The market maker's net profit from Jorge's transaction will be $550
Step-by-step explanation:
The market maker's net profit from Jorge's transaction, excluding inventory effects, will be D) $550
The market maker purchases the entire block of 1,500 shares from Adele. Let's say Adele sells them at a price that allows the market maker to make a profit of $1 per share. Therefore, the market maker's profit from purchasing the block is $1,500.
The market maker then resells 1,000 shares to Jorge. The profit from this resale is $1,000. Therefore, the net profit for the market maker from Jorge's transaction is $1,000.
$1,500 (profit from purchasing the block) - $1,000 (profit from resale to Jorge) = $550.