Add training workflow, datasets, and runbook

training_data/curated/text/3fbcd225fe372a143179a3746264b51d426240ecae5f946bc738c3f7a7bcba08.txt

@@ -0,0 +1,37 @@
+290  •   The Intelligent Option Investor
+preceding equation, we can see that the left side of the equation is levered 
+(because it contains only options, and options are levered instruments), 
+and the right side is unlevered. Obviously, then, the two cannot be exactly 
+the same.
+We can fix this problem by delevering the left side of the preceding 
+equation. Any time we sell a put option, we have to place cash in a mar -
+gin account with our broker. Recall that a short put that is fully margined 
+is an unlevered instrument, so margining the short put should delever 
+the entire option position. Let’s add a margin account to the left side and 
+put $K in it:
+C
+K − PK + K = S
+This equation simply says that if you sell a put struck at K and put $K 
+worth of margin behind it while buying a call option, you’ll have the same 
+risk, return, and leverage profile as if you bought a stock—just as in our 
+big-picture diagram.
+But this is not quite right if one is dealing with small differences. 
+First, let’s say that you talk your broker into funding the margin ac-
+count using a risk-free bond fund that will pay some fixed amount of 
+interest over the next year. To fund the margin account, you tell your 
+broker you will buy enough of the bond account that one year from 
+now, when the put expires, the margin account’s value will be exactly 
+the same as the strike price. In this way, even by placing an amount less 
+than the strike price in your margin account originally, you will be able 
+to fulfill the commitment to buy the stock at the strike price if the put 
+expires in the money (ITM). The amount that will be placed in margin 
+originally will be the strike price less the amount of interest you will 
+receive from the risk-free bond. In mathematical terms, the preceding 
+equation becomes 
+C
+K − PK + (K – Int) = S
+Now all is right with the world. For a non-dividend-paying stock, this fully 
+expresses the technical definition of put-call parity.
+However, because we are talking about dividend arbitrage, we have to 
+think about how to adjust our equation to include dividends. We know that 
+a call option on a dividend-paying stock is worth less because the dividend