Add training workflow, datasets, and runbook

training_data/curated/text/71c9df31e1c0e0f2c0f76ecae29cbd39474549c9430cabfa1d99f9484c96b078.txt

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+568 Part V: Index Options and Futures 
+Recall how these items are calculated: The number of shares of a stock in the 
+index is that stock's float divided by the divisor of the index. Also, the percent of the 
+index is the stock's capitalization (float times price) divided by the total capitalization 
+of the index (this is step 1 above). Finally, the index value is the index's total capital­
+ization divided by the index divisor. 
+With this information, we can now construct a mini-index that could be used to 
+hedge the UVX itself. Notice that these four stocks alone comprise 28.4% of the 
+entire UVX index. We would want each of these four stocks to have the same relative 
+weight within our mini-index as they do within the UVX itself. The sum of the capi­
+talizations of the four stocks in the above table as well as their relative percentages 
+are given in the following table. 
+Pct of Pct of 
+Index Mini-Index 
+Stock Copitolizotion (Step 1) (Step 2) 
+IBM 78,000,000 13.1% 46.2% 
+XON 34,000,000 5.7% 20.1% 
+GE 31,500,000 5.3% 18.6% 
+GM 25,500,000 4.3% 15.1% 
+Total: 169,000,000 28.4% 100.0% 
+The percent of the mini-index is each of the four stocks' capitalizations as a per­
+cent of the sum of their capitalizations (step 2 from above). There are two ways to 
+compute step 2. First, for IBM one would divide 78 million (its capitalization) by 169 
+million (the total capitalization). Second, using the percentages from step 1, divide 
+IBM's percent, 13.1, by 28.4, the total percent. Either method gives the answer of 
+46.2 percent. We have now constructed the relative percentages of the mini-index 
+that each stock comprises. Note that they are in the same relationship to each other 
+as they are in the UVX itself. Now it is a simple matter to convert that percent into 
+shares of stock, once we decide how many futures contracts to trade against our mini­
+index. 
+When we know the total dollar amount of futures to hedge and we know the 
+percent of the mini-index that each stock comprises, we can compute each stock's 
+capitalization within the mini-index. Finally, we divide by that stock's price to see how 
+many shares of each stock to buy. Assume that we are going to use UVX options, 
+which are worth $100 per point, in lots of 50 options. The total dollar amount of the 
+index with the UVX at 170.25 would then be $851,250 (170.25 x 100 x 50). This 
+accomplishes step 3. The following table shows the calculations necessary to deter­
+mine how many shares of stock to buy against these 50 option contracts.