Add training workflow, datasets, and runbook

training_data/curated/text/2bf7923e5a5f20b174706e6b24761ebcec7d1e7dff15ad193e2e5a6d0b94f679.txt

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+460 Part IV: Additional Considerations 
+many of the applications that are going to be prescribed, it is not necessary to know 
+the exact theoretical price of the call. Therefore, the dividend "correction" might not 
+have to be applied for certain strategy decisions. 
+The model is based on a lognormal distribution of stock prices. Even though the 
+normal distribution is part of the model, the inclusion of the exponential functions 
+makes the distribution lognormal. For those less familiar with statistics, a normal dis­
+tribution has a bell-shaped curve. This is the most familiar mathematical distribution. 
+The problem with using a normal distribution is that it allows for negative stock 
+prices, an impossible occurrence. Therefore, the lognormal distribution is generally 
+used for stock prices, because it implies that the stock price can have a range only 
+between zero and infinity. Furthermore, the upward (bullish) bias of the lognormal 
+distribution appears to be logically correct, since a stock can drop only 100% but can 
+rise in price by more than 100%. Many option pricing models that antedate the 
+Black-Scholes model have attempted to use empirical distributions. An empirical 
+distribution has a different shape than either the normal or the lognormal distribu­
+tion. Reasonable empirical distributions for stock prices do not differ tremendously 
+from the lognormal distribution, although they often assume that a stock has a 
+greater probability of remaining stable than does the lognormal distribution. Critics 
+of the Black-Scholes model claim that, largely because it uses the lognormal distri­
+bution, the model tends to overprice in-the-money calls and underprice out-of-the­
+money calls. This criticism is true in some cases, but does not materially subtract 
+from many applications of the model in strategy decisions. True, if one is going to buy 
+or sell calls solely on the basis of their computed value, this would create a large prob­
+lem. However, if strategy decisions are to be made based on other factors that out­
+weigh the overpriced/underpriced criteria, small differentials will not matter. 
+The computation of volatility is always a difficult problem for mathematical 
+application. In the Black-Scholes model, volatility is defined as the annual standard 
+deviation of the stock price. This is the regular statistical definition of standard devi­
+ation: 
+where 
+P = average stock price of all P/s 
+Pi = daily stock price 
+n 
+~ (Pi -P)2 
+cr2 = _1=_1 __ _ 
+n-1 
+v = a!P