There are three ways in which options can be specified, though not all options can be specified in all three ways:
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As an installation specification
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As a PARM specification
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As a SORT/MERGE control statement specification.
Note that there are six options that can be specified as a PARM option or a SORT/MERGE option. They are: CENTWIN, DYNALLOC, EQUALS/NOEQUALS, FILSZ, SKIPREC, and STOPAFT.
When an option is specified in more than one way, the following precedence rules apply:
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A SORT/MERGE or PARM specification overrides an installation specification.
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A PARM specification overrides a SORT/MERGE specification except for EQUALS/NOEQUALS.