Add training workflow, datasets, and runbook

training_data/curated/text/c3b680efaac24135c79793cda0b6f632a06fb529fb6b93f747b70922fdbb9c77.txt

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+430 l'art IV: Additional Considerations 
+Conversion profit = Striking price + Call price - Stock price - Put price + 
+Dividends to be received - Carrying cost of position 
+Reversal profit = Stock + Put - Strike - Call + Carrying cost - Dividends 
+Note that during any one trading day, the only items in the formulae that can change 
+are the prices of the securities involved. The other items, dividends and carrying cost, 
+are fixed for the day. Thus, one could have a small computer program prepared that 
+listed the fixed charges on a particular stock for all the strikes on that stock. 
+Example: It is assumed that XYZ stock is going to pay a ½-point dividend during the 
+life of the position, and that the position will have to be held for three months at a 
+carrying cost of 6% per year. If the arbitrageur were interested in a conversion with 
+a striking price of 50, his fixed cost would be: 
+Conversion fixed cost = Carrying rate x Time held x Striking price -
+Dividend to be received 
+= .06 X 3/12 X 50 - ½ 
+= .75- ½ = .25, or¼ point 
+The arbitrageur would know that if the profit potential, computed in the simplistic 
+manner using only the prices of the securities involved, was greater than ¼ point, he 
+could establish the conversion for an eventual profit, including all costs. Of course, 
+the carrying costs would be different if the striking price were 40 or 60, so a com­
+puter printout of all the possible striking prices on each stock would be useful in 
+order for the trader to be able to refer quickly to a table of his fixed costs each day. 
+MORE ON CARRYING COSTS 
+The computation of carrying costs can be made more involved than the simple 
+method used above. Simplistically, the carrying cost is computed by multiplying the 
+debit of the position by the interest rate charged and the time that the position will 
+be held. That is, it could be formulated as: 
+Carrying cost = Strike x r x t 
+where r is the interest rate and t is the time that the position will be held. Relating 
+this formula for the carrying cost to the conversion profit formula given above, one 
+would get: 
+Conversion profit = Call - Stock - Put + Dividend + Strike - Carrying cost 
+= Call - Stock - Put + Dividend + Strike ( 1 - rt)