Chapter 04 · Section 4.1

Limit Orders- Execution 3

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

As we know, it was not possible to execute this limit order yesterday because the price did not go down to 7 1/4 during the entire trading day. Today you look at your terminal and find out that the OEX June 230 call trades at 6 15/16.

Will the order you gave yesterday be executed today?

• a) yes
  No. Unless otherwise specified, an order is only valid on the day it is given.
  b) no

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