Chapter 04 · Section 4.1
Proper Orders
Which of the following are proper orders?(Note: GTC means Good-Til-Cancelled)
a) Sell 10 puts Homstk June 25 at 1 1/2 or better, GTC
b) Sell 10 puts EKodak June 55 GTC
c) Buy 5 calls Pepsi June 95 at 3 3/4 or better, one cancels the other
d) Buy 30 calls Polar July 65 at 3 3/8 or better, fill-or-kill
e) a and b
f) a and d
There is no reason for a market order to be good 'til cancelled, because it must be executed immediately anyway.
Two of the four orders are proper.