A Glossary of important terms is presented at the end of the book for easy reference.
Glossary
9
A
Accrued interest: e prorated portion of a bond’s coupon since
the previous coupon payment.
American options: Options that can be exercised anytime during
the life of the option.
Arbitrage: Making prots with zero net investment and taking
no risk when there is a mispricing of related securities in the
market.
Arbitrager: A trader who enters into arbitrage trades.
Asian options: Options in which pay-o is based on the average
price of the underlying asset over an agreed period of time and
the exercise price.
At-the-money option: An option ...
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