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.
c) cannot tell whether your order was executed.
The limit price is 7 1/4. Do you know whether the option traded at a price above or below its close of 7 5/16 during the day?