Add training workflow, datasets, and runbook

training_data/curated/text/a9e48116e288ff6d97c43f34e61713de63ac0db690283bb4d93e1c7567cb38c5.txt

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+312  •   Index
+Market conditions (continued)
+time-to-expiration assumptions, 64–67
+and types of volatility, 59–60
+volatility assumptions, 60–64
+Market efficiency, 32–34, 40–43
+Market makers, 147, 281
+Market risk, 263–265
+Matching, 302n1 (Appendix B)
+Maximum return, 225
+Mergers and acquisitions:
+strike prices selection and, 195–196
+tenor and, 191–192
+Merton, Robert, 8–9
+Miletus, 6–7
+Mispriced assets, 274–277
+Mispriced options, 143–162
+deltas of, 151–155
+reading option quotes, 144–151
+and valuation risk, 266
+and valuation vs. BSM range, 155–162
+Moneyness of options:
+calls, 13–14
+puts, 16–17
+Morningstar, 132
+Most likely (term), 38
+Motorola Mobility Systems, 84
+Mueller Water, 148–149, 154, 158–160
+Multiples-based valuation, 99–100
+Mutual funds, 132–133, 136
+n
+Nominal GDP growth:
+owners’ cash profit vs., 104–108
+as structural constraint, 104
+Normal distribution, 32, 36, 40, 43–45
+Notional amount of position, 173
+Notional exposure, 173
+O
+OCC (Options Clearing  
+Corporation), 8
+OCP (see Owners’ cash profit)
+Operating assets, 110
+Operating leverage (operational 
+leverage):
+defined, 282–284
+and level of investment leverage, 
+197–199
+and profitability, 101
+Operational details of companies,  
+xiii–xiv, 110–111
+Option investing:
+choices in, 22–24
+conditions favoring BSM, 269–273
+conditions not favoring BSM, 273–281
+flexibility in, 20–28
+long-term strategies, 1
+misconceptions about, 1
+risk in, 268
+shortcuts for valuation in, 93–97
+stock vs., 21–22
+strategies for, 142 (See also specific 
+types of strategies)
+structural impediments in, 131–139
+three-step process, xiv
+valuation in, 75
+Option pricing, 29–47, 49–74
+and base assumptions of BSM, 40–47
+market conditions in, 59–74
+predicting future stock prices from, 
+32–39
+and ranges of exposure, 50–56
+theory of, 30–32
+time vs. intrinsic value in, 56–59
+Option pricing models:
+base assumptions of, 40–47
+history of, 8–9
+operational details of companies in, 
+xiii–xiv
+predicting future stock prices with, 
+32–39
+ranges of exposure and price 
+predictions from, 50–56
+(See also Black-Scholes-Merton 
+[BSM] model)
+Option quotes, 144–151