Add training workflow, datasets, and runbook

training_data/curated/text/2295c1579c8da54d47b1ef7d0bb059138f1c5eaca5cda41954cccf366aa2c374.txt

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+600 Part V: Index Options and Futures 
+Solving the following equation for $MID would give the desired answer: 
+Cash Value = 13 = 10 + 11.5 x ($MID/166.l - 1) 
+3 = 11.5 x $MID/ 166.1 - 11.5 
+14.5 x 166.1 / 11.5 = $MID 
+209.43 = $MID 
+So, if $MID were at 209.43, the cash value would be 13 - the price the investor 
+is currently paying for SIS. This is protection of 12.2% down from the current price 
+of 238.54. That is, $MID could decline 12.2% at maturity, from the current price of 
+238.54 to a price of 209.43, and the investor who bought SIS would break even 
+because it would still have a cash value of 13. 
+Of course, this discount could have been computed using the SIS prices of 13 
+and 15.02 as well, but many investors prefer to view it in terms of the underlying 
+index - especially if the underlying is a popular and often-cited index such as the S&P 
+500 or Dow-Jones Industrials. 
+From Figure 32-1, it is evident that the discount persisted throughout the 
+entire life of the product, shrinking more or less linearly until expiration. 
+SIS TRADING AT A DISCOUNT TO THE GUARANTEE PRICE 
+In the previous example, the investor could have bought SIS at a discount to its cash 
+value computation, but if the stock market had declined considerably, he would still 
+have had exposure from his SIS purchase price of 13 down to the guarantee price of 
+10. The discount would have mitigated his percentage loss when compared to the 
+$MID index itself, but it would be a loss nevertheless. 
+However, there are sometimes occasions when the structured product is trad­
+ing at a discount not only to cash value, but also to the guarantee price. This situation 
+occurred frequently in the early trading life of SIS. From Figure 32-1, you can see 
+that in 1995 the cash value was near 11, but SIS was trading at a discount of more 
+than 2 points. In other words, SIS was trading below its guarantee price, while the 
+cash value was actually above the guarantee price. It is a "double bonus" for an 
+investor when such a situation occurs. 
+Example: In February 1995, the following prices existed: 
+$MID: 177.59 
+SIS: 8.75 
+For a moment, set aside considerations of the cash value. If one were to buy SIS 
+at 8. 75 and hold it for the 5.5 years remaining until maturity, he would make 1.25 
+points on his 8.75 investment- a return of 14.3% for the 5.5-year holding period. As 
+a compounded rate of interest, this is an annual compound return of 2.43%.