Chapter 04 · Section 4.1

Limit Orders- Timing

Let us take a closer look at this limit order:

Buy 3 Puts Citicp July 55 at 6 3/8 or better

At the moment the order reaches the trading floor, Citicorp July 55 put options trade at 6 1/2. Should the floor broker buy?

• a) no
  Yes. The order says 6 3/8 or better, and 6 1/2 is a worse price than 6 3/8 for a buyer. Continue
  b) yes

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