Accrued Interest: Interest earned between the most recent interest payment and the present date but not yet paid to the lender.

Actuals: See Cash Commodity.

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.

Against Actuals: See Exchange For Physicals.

Arbitrage: The simultaneous purchase and sale of similar commodities in different markets to take advantage of a price discrepancy.

Arbitration: The procedure of settling disputes between members, or between members and customers.

Assign: To make an option seller perform his obligation to assume a short futures position (as a seller
of a call option) or a long futures position (as a seller of a put option).

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.

Associate Membership (CBOT): A Chicago Board of Trade membership that allows an individual to trade financial instrument futures and other designated markets.

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.