Add training workflow, datasets, and runbook

training_data/curated/text/8f43169dea5228199de3c01693e15c4d79621c18fb2a713388a54c048e835714.txt

@@ -0,0 +1,35 @@
+Chapter 29: lntrodudion to Index Option Produds and Futures S01 
+introduced by the CBOE), the NASDAQ Index ($NDX), the Dow-Jones 30 
+Industrials ($DIX), and several other indices. In each of these cases there are too 
+many stocks in the index, and too many varying quantities of each of the stocks, to be 
+able to handle the physical delivery of each of the stocks in the case of exercise or 
+assignment. Some cash-based options are based on subindices ( that is, subgroups of 
+the larger indices such as the transportation group). 
+EXERCISE AND ASSIGNMENT 
+It is important to understand the ramifications of exercise and assignment when deal­
+ing with this type of option. When a cash-based option is exercised, the owner 
+receives cash equal to the difference between the index's closing price and the strike 
+price of the option. The option writer who is assigned must pay out an equal amount. 
+The following example shows how a call exercise might work. In this and the follow­
+ing examples we will use a fictional index '.lYX (index symbols often end in X). 
+Example: Suppose an investor buys a '.lYX September 160 call option. At a later date, 
+the index has risen substantially in price and closes at 175.24 on a particular day. The 
+investor decides it is time to take his profit by exercising his call option. Assuming the 
+'.lYX contract is worth $100 per point, just as stock options are, he receives cash in 
+the amount of $100 times the difference between the index closing price and the 
+strike price: $100 x (175.24 - 160.00) = $1,524. He has no further position or rights 
+- the option position disappears from his account by virtue of the exercise and he 
+does not acquire any security by the exercise; he gets only cash. 
+An assignment would work in a similar manner, with the seller of an option hav­
+ing to pay out of his account cash equal to the difference between the index closing 
+price and the option's striking price. As an example, suppose that a trader sells a put 
+option on the '.lYX Index - the October 165 put. Subsequently, the index drops in 
+price, and one morning the writer of this put option finds that he has been assigned 
+(as of the previous day, as is the case with stock options). If the index closed at 157.58 
+on the previous day, then the option writer's account will be debited an amount equal 
+to $100 X (165.00 - 157.58) = $742. 
+EUROPEAN VERSUS AMERICAN EXERCISE 
+Before proceeding with more examples of index option exercise and the accompany­
+ing strategies, it is necessary to introduce two new definitions. American exercise 
+means that an option may he exercised at any time; European exercise means that an 
+option may only be exercised on its expiration day. Many of the cash-based index