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
• b) no
  Yes. The order you placed yesterday is no longer valid. However, if you had specified "good until canceled" (GTC) or an equivalent expression, it would have been executed this morning. Continue

(Click here for help)