Appendix II. Glossary
- American Stock Exchange (AMEX)
Securities exchange that handles approximately 20% of all securities trades within the USA.
- American-style option
An option contract that can be exercised at any time before the Expiration Date. Stock options are American-style.
- Arbitrage
Where the simultaneous purchase and disposal of a combination of financial instruments is such that a guaranteed profit is made automatically.
- Ask
The price that you buy at and the price that market makers and floor brokers are willing to sell at. The Ask stands for what the market makers and floor traders ask you to pay for the stock (or options or other instrument).
- ATM (at the money)
Where the option Exercise price is the same as the asset price.
- At the ...
Get Options Made Easy: Your Guide to Profitable Trading, Second Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
