Add training workflow, datasets, and runbook

training_data/curated/text/b0d10ed61bfd1c89b625989ba026307ba036abe4be2958b2ea6fcd65225feec2.txt

@@ -0,0 +1,35 @@
+646 Part V: Index Options and Futures 
+the dividend on the index - the same one that was used for the call valuation, as in 
+the last example. 
+THE IMPLIED DIVIDEND 
+If one does not have access to all of the dividend information necessary to make the 
+"present worth of the dividends" calculation (i.e., if he is a private individual or pub­
+lic customer who does not subscribe to a computer-based dividend "service"), there 
+is still a way to estimate the present worth of the dividend. All one need do is make 
+the assumption that the market- makers know what the present worth of the dividend 
+is, and are thus pricing the options accordingly. The individual public customer can 
+use this information to deduce what the dividend is. 
+Example: OEX is trading at 700, the June options have 30 days of life remaining, the 
+short-term interest rate is 10%, and the following prices exist: 
+June 700 call: 18.00 
+June 700 put: 14.50 
+One can use iterations of the Black-Scholes model to determine what the OEX 
+"dividend" is. In this case, it turns out to be something on the order of $2.10. 
+Briefly, these are the steps that one would need to follow in order to determine 
+this dividend: 
+1. Assume the dividend is $0.00. 
+2. Using the assumed dividend, use the Black-Scholes model to determine the 
+implied volatility of the call option, whose price is known (18.00 in the above 
+example). 
+3. Using the implied volatility determined from step 2 and the assumed dividend, 
+is the arbitrage put value as derived from the Black-Scholes calculations at the 
+end of step 2 roughly equal to the market value of the put (14.50 in the above 
+example)? If yes, you are done. If not, increase the assumed dividend by some 
+nominal amount, say $0.10, and return to step 2. 
+Thus, without having access to complete dividend information, one can use the 
+information provided to him by the marketplace in order to imply the dividend of an 
+index option. The only assumption one makes is that the market-makers know what 
+the dividend is (they most assuredly do). Note that the implied volatility of the 
+options is determined concurrently with the implied dividend (step 2 above). A veiy 
+useful tool, this simple "implied dividend calculator" can be added to any software 
+that employs the Black-Scholes model.