Chapter 04 · Section 4.1

Stop Orders- Price Fluctuations

Buy 3 CBOE BankAm June 15 calls stop-loss 3 1/2 Suppose that when you placed the order, the price was 3 1/8. Later, the price suddenly rose to 3 7/8, then fell quickly to before the floor broker was able to execute the order.

Should the floor broker buy at 3 1/4?

a) yes
b) no

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