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.
• b) know that your order was not executed.
  No. This is possible, given that your order could not have been executed at that closing price. However, if the market price was less than or equal to 7 1/4 before closing at 7 5/16, your order would have been executed.
  c) cannot tell whether your order was executed.

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