Chapter 04 · Section 4.1
Cancellation
Which of the follwing orders must be cancelled if they CANNOT be executed immediately?
a) Buy 100 IBM calls July 150 at 11½ or better, all-or-none
b) Buy 100 IBM calls July 150 at 11½ or better, immediate-or-cancel
c) Buy 100 IBM calls July 150 at 11½ or better, fill-or-kill
d) b and c
The relevant criteria is time.
When an order hits the trading floor (especially if it is a limit order), it may not be possible to fill it immediately.