Add training workflow, datasets, and runbook

training_data/curated/text/4dde12d3dbd60ff0b3f4a71e04c17bca9052480394c779f5e787f52baeb94ee8.txt

@@ -0,0 +1,33 @@
+648 Part V: Index Options and Futures 
+Example: The following prices exist: 
+ZYX Cash Index: 17 4.49 
+ZYX December future: 177.00 
+There are 80 days remaining until expiration, the volatility of ZYX is 15%, and 
+the risk-free interest rate is 6%. 
+In order to evaluate the theoretical value of a ZYX December 185 call, the fol­
+lowing steps would be taken: 
+l. Evaluate the regular Black-Scholes model using 185 as the strike, 177.00 as the 
+stock price, 15% as the volatility, 0.22 as the time remaining (80/365), and 0% as 
+the interest rate. Note that the futures price, not the index price, is input to the 
+model as stock price. 
+Suppose that this yields a result of 2.05. 
+2. Discount the result from step l: 
+Black Model call value = e-(.0 6 x 0-22) x 2.05 
+= 2.02 
+In this case, the difference between the Black model and the Black-Scholes 
+model is small (3 cents). However, the discounting factor can be large for longer-term 
+or deeply in-the-money options. 
+The other items of a mathematical nature that were discussed in Chapter 28 on 
+mathematical applications are applicable, without change, to index options. Expected 
+return and implied volatility have the same meaning. Implied volatility can be calcu­
+lated by using the Black-Scholes formulas as specified above. 
+Neutral positioning retains its meaning as well. Recall that any of the above the­
+oretical value computations gives the delta of the option as a by-product. These deltas 
+can be used for cash-based and futures options just as they are used for stock options 
+to maintain a neutral position. This is done, of course, by calculating the equivalent 
+stock position (or equivalent "index" or "futures" position, in these cases). 
+FOLLOW-UP ACTION 
+The various types of follow-up action that were applicable to stock options are avail­
+able for index options as well. In fact, when one has spread options on the same 
+underlying index, these actions are virtually the same. However, when one is doing 
+inter-index spreads, there is another type of follow-up picture that is useful. The rea-