Chapter 04 · Section 4.1

Limit Orders 3

Which of the following is a limit order:

Note: Citicp is the ticker symbol for Citicorp common stock. The option is traded on CBOE.

a) Buy 3 Puts Citicp July 55 Stop-Limit 6 3/8
b) Buy 3 Puts Citicp July 55
• c) Buy 3 Puts Citicp July 55 at 6 3/8
  Yes. Order (c) is a limit order because a limit price is stated as the sole restriction. The broker may execute at a price at least as favourable as 6 3/8. Note that the word "limit" is not required. Continue

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