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Stefan Places a Good-'Til-Canceled Limit Order to Sell 200 Shares

Question 113

Multiple Choice

Stefan places a good-'til-canceled limit order to sell 200 shares of MRK at $76 a share. When his order reaches the trading floor, MRK is trading at $76.48. Which of the following statements is true concerning Roy's order?


A) The trade will not be executed and will be immediately cancelled.
B) The order will only be executed if it can be matched with an order to buy at $76.
C) The broker will sell the 200 shares at $76.48 and keep the additional $0.48 as a commission.
D) The order will be executed at $76.48 with the proceeds credited to Stefan's account.

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