Add training workflow, datasets, and runbook

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+Chapter 30: Stock Index Hedging Strategies 
+FUTURES FAIR VALUE 
+533 
+The formula for calculating the fair value of the futures contract is extremely simple, 
+although one of the factors is a little difficult to obtain information on. First, let's look 
+at the simple futures fair value formula: 
+Simple Formula: 
+Futures fair value= Index x [l +Timex (Rate - Yield)] 
+where index is the current value of the index itself, rate is the current carrying rate 
+(typically, the broker loan rate), yield is the combined annual yield of all the stocks in 
+the index, and time is the time, in years, remaining until expiration of the contract. 
+Example: Suppose the Zl'X Index is trading at 160.00, the broker loan rate is 10%, 
+the yield on the 500 stocks is 5%, and there are exactly 3 months remaining until 
+expiration of the futures contract. The time is .25, expressed in years, so the formu­
+la becomes 
+Future fair value= 160.00 x [l + .25 x (.10- .05)] 
+= 160.00 X (1 + .0125) = 162.00 
+Thus, the future should be trading at about 2 points above the value of the index 
+itself. This premium of the future over the index represents the savings in not having 
+to pay for and carry 500 stocks, less the loss of the dividends on the stocks ( the future 
+does not pay dividends). If the future should get very expensive - trading at 3.50 or 
+4 points over the index - then it would have to be considered very overvalued, and 
+an arbitrageur could move in to take advantage of that fact. Similarly, if the future 
+should trade cheaply, at less than a point over fair value, there might be an arbitrage 
+available in that case as well. 
+The fair value is really only a function of four things: the value of the index itself, 
+the time remaining until expiration, the current carrying rate, and the dividends 
+being paid by the stocks in the index until expiration. Notice that "the dividends paid 
+by the stock in the index until expiration" is not quite the same as the yield of the 500 
+stocks, which we used in the above simple formula. We will expand more on that dif­
+ference shortly. 
+Before doing that, however, let us look at how changes in the variables in the for­
+mula affect the fair value of the futures contract. More important, we are interested in 
+how changes in the variables affect the premium of the futures contract over the index 
+value. This is what one is primarily concentrating on when trading market baskets. 
+As the index value itself rises, the fair value premium rises. For example, if 2 
+points is the fair premium when the index is at 160, as in the above example, then 4