Chapter 04 · Section 4.1

Orders 2

If an order for a security can read: Buy ten AT&T market

Can an order for an option on a security read as follows? Buy ten AT&T options market

a) no
• b) yes
  No. For a single underlying asset, many different options can be traded (e.g. different strike prices, delivery months etc.). Therefore, this order does not provide sufficient information to trade an option.

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