Chapter 04 · Section 4.1

Stop Limit Orders

Which of the following stop limit orders cannot be executed at 6 1/2?

• a) Buy 3 July Sperry 45 calls 6 1/4 stop limit
  Yes. In (a), 6 1/4 is both the trigger price and the limit price. Because the trigger price has been reached, the order becomes a limit order at 6 1/4. Continue
  b) Buy 3 July Sperry 45 calls 6 1/4 stop limit 6 1/2

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