Add training workflow, datasets, and runbook

This commit is contained in:
2025-12-23 21:17:22 -08:00
commit 619e87aacc
2140 changed files with 2513895 additions and 0 deletions

View File

@@ -0,0 +1,28 @@
211
Chapter 10
Accepting exposure
Brokerages and exchanges treat the acceptance of exposure by counter -
parties in a very different way from counterparties who want to gain expo-
sure. There is a good reason for this: although an investor gaining exposure
has an option to transact in the future, his or her counterparty—an investor
accepting exposure—has a commitment to transact in the future at the sole
discretion of the option buyer. If the investor accepting exposure does not
have the financial wherewithal to carry out the committed transaction, the
broker or exchange is on the hook for the liability.
1
For example, an investor selling a put option struck at $50 per share
is committing to buy the stock in question for $50 a share at some point
in the future—this is the essence of accepting exposure. If, however,
the investor does not have enough money to buy the stock at $50 at
some point in the future, the investors commitment to buy the shares is
economically worthless.
To guard against this eventuality, brokers require exposure-accepting
investors to post a security deposit called margin that will fully cover the fi-
nancial obligation to which the investor is committing. In the preceding ex-
ample, for instance, the investor would have to keep $5,000 (= $50 per share ×
100 shares/contract) in reserve and would not be able to spend those reserved
funds for stock or option purchases until the contract has expired worthless.
Because of this margin requirement, it turns out that one of our strat-
egies for accepting leverage—short puts—always carries with it a loss lev-
erage of 1.0—exactly the same as the loss leverage of a stock. Think about
it this way: what difference is there between using $50 to buy a stock and