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Options Made Easy: Your Guide to Profitable Trading, Third Edition by Guy Cohen

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Appendix II. Glossary

American Stock Exchange (AMEX)

Securities exchange that handles approximately 20 percent of all securities trades in the U.S.

American-style option

An option contract that can be exercised at any time before the expiration date. Stock options are American-style.

Arbitrage

The simultaneous purchase and disposal of a combination of financial instruments to generate a guaranteed profit automatically.

Ask

The price that you buy at and the price that market makers and floor brokers are willing to sell at.

ATM (at-the-money)

Condition in which the option strike price is the same as the asset price.

At the opening order

An order specifying execution at the market opening or, if not possible, cancelling.

Automatic exercise

Exercise ...

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