-
Accrued Interest
Interest earned between the most recent interest payment and the present date but not yet paid to the lender. -
Add-on Method
A method of paying interest where the interest is added onto the principal at maturity or interest payment dates. -
Adjusted Futures Price
The cash-price equivalent reflected in the current futures price. This is calculated by taking the futures price times the conversion factor for the particular financial instrument (e.g., bond or note) being delivered. -
American-Style Option
An option contract that may be exercised at any time between the date of purchase and the expiration date. Most exchange-traded options in the United States are American-style. -
Associate Membership
A Chicago Board of Trade membership that allows an individual to trade financial instrument futures and other designated markets. -
Associated Person (AP)
An individual who solicits orders, customers, or customer funds (or who supervises persons performing such duties) on behalf of a Futures Commission Merchant, an Introducing Broker, a Commodity Trading Adviser, or a Commodity Pool Operator. -
At-The-Money
An option is at-the-money if the strike price of the option is equal to the market price of the underlying security. -
At-the-Money Option
An option with a strike price that is equal, or approximately equal, to the current market price of the underlying futures contract.
