limit buy question

Anyone has an answer for this?:

/139/61/108309/1.html

Let me explain better:

If a guy tries to sell now 100000L$ at 100000L$ /1 usd.
And there is a buy order for 100000L$ at 340L$ / 1 usd.

Which rate will apply?

option 1:
340/usd will apply, and the seller will get aprx 290 usd instead of 1 usd.

option 2:
100000/usd will apply, and the buyer will pay 1 usd instead of 290 usd.

option 3:
The buyer will pay 290 usd and the seller will get 1 usd. and the rest 289 will go to LL.

Which option is true?

Robin Linden's answered it:

/139/61/108309/1.html#post1050924