Add training workflow, datasets, and runbook

training_data/curated/text/962159b799d5e106d284fe79cf067c85cc86e81163e09267a7ee8b788290f538.txt

@@ -0,0 +1,33 @@
+Chapter 37: How Volatility Affects Popular Strategies 751 
+Stock Price July 50 call July 50 put Implied Volatility Put's Vega 
+50 7.15 6.54 69% 0.10 
+7.25 6.64 70% 0.10 
+7.35 6.74 71% 0.10 
+Thus, the put's vega is 0.10, too - the same as the call's vega was. 
+In fact, it can be stated that a call and a put with the same terms have the same 
+vega. To prove this, one need only refer to the arbitrage equation for a conversion. If 
+the call increases in price and everything else remains equal - interest rates, stock 
+price, and striking price - then the put price must increase by the same amount. A 
+change in implied volatility will cause such a change in the call price, and a similar 
+change in the put price. Hence, the vega of the put and the call must be the same. 
+It is also important to know how the vega changes as other factors change, par­
+ticularly as the stock price changes, or as time changes. The following examples con­
+tain several tables that illustrate the behavior of vega in a typically fluctuating envi­
+ronment. 
+Example: In this case, let the stock price fluctuate while holding interest rate (5% ), 
+implied volatility (70%), time (3 months), dividends (0), and the strike price (50) con­
+stant. See Table 37-1. 
+In these cases, vega drops when the stock price does, too, but it remains fairly 
+constant if the stock rises. It is interesting to note, though, that in the real world, 
+when the underlying drops in price especially if it does so quickly, in a panic mode 
+- implied volatility can increase dramatically. Such an increase may be of great ben­
+efit to a call holder, serving to mitigate his losses, perhaps. This concept will be dis­
+cussed further later in this chapter. 
+TABLE 37-1 
+Implied Volatility Theoretical 
+Stock Price July 50 Call Price Coll Price Vega 
+30 70% 0.47 0.028 
+40 2.62 0.073 
+50 7.25 0.098 
+60 14.07 0.092 
+70 22.35 0.091