Add training workflow, datasets, and runbook
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950
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-if using call bull spread and put bear spread ( Ch. 23)
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R = p2 + c2 - Pl - c3 - s3 + s2
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Then
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P = s3 - s2 - R or R = s3 - s2 - P
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D = s1 + R
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U = S3-R
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Combination Buy (Ch. 18)
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S1 < S2
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Out-of-the-money: R = c2 + Pl
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In-the-money: R = c1 + p2 - s2 + s1
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D = s1 -P
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U = s2 + P
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Combination Sale (Ch. 20)
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Out-of-the-money: P = c2 + PI
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In-the-money: P = c1 + p2 s2 + s1
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D = s1 - P
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X
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s
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C
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p
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current stock price
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striking price
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call price
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put price
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r interest rate
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t ~ time (in years)
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f futures price
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U = s2 + P
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B
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u
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D
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p
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R
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break-even point
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upside break-even point
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downside break-even point
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maximum profit potential
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maximum risk potential
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Appendix C
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Subscripts indicate multiple items. For example s1, s2, s3 would designate three striking prices in a formula.
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The formulae are arranged alphabetically by title or by strategy.
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