Add training workflow, datasets, and runbook

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The Black-Scholes-Merton Model33
Okay, even if the last assumption is a little hard to swallow, the first
three sound plausible, especially if you have read something about the
efficient market hypothesis (EMH). Suffice it to say that these assumptions
express the “orthodox” opinion held by financial economists. Most finan-
cial economists would say that these assumptions describe correctly, in
broad-brush terms, how markets work. They acknowledge that there may
be some exceptions and market frictions that skew things a bit in the real
world but that on the whole the assumptions are true.
Let us now use these assumptions to build a picture of the future
stock price range predicted by the BSM.
Start with an Underlying Asset
First, imagine that we have a stock that is trading at exactly $50 right now
after having fluctuated a bit in the past.
Advanced Building Corp. (ABC)
5/18/2012 5/20/2013 249 499 749 999
100
90
80
70
60
50
40
30
20
Date/Day Count
Stock Price
I am just showing one year of historical trading data and three years
of calendar days into the future. Lets assume that we want to use the BSM
to predict the likely price of this asset, Advanced Building Corp. (ABC),
three years in the future.
The BSMs first assumption—that markets are efficient and stock
prices are perfect reflections of the worth of the corporation—means that if