Chapter 04 · Section 4.1

Limit Orders- Execution 1

Suppose you placed the following limit order:

BUY 3 CALLS OEX JUNE 230 AT 7 1/4 OR BETTER

Note: OEX is the ticker symbol for the CBOE S&P 100 Index option. The next morning, you read that the OEX June 230 call closed at 7 5/16. From this information, you:

• a) know that your order was executed.
  No. It is certainly possible that the order was executed, but you cannot be sure. You do not know if the price had been down to 7 1/4 before the market closed.
  b) know that your order was not executed.
  c) cannot tell whether your order was executed.

(Click here for help)