Add training workflow, datasets, and runbook
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310 • Index
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Gross domestic product (GDP), 104–108
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Growth:
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buying call options for, 22
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nominal GDP , 104–108
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revenue, 92, 97–99
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structural growth stage, 94, 95
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H
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Hedge funds, 132–134, 136
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Hedge funds of funds (HFoF), 134
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Hedges:
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reinvesting profit from, 254–255
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size of, 255–258
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timing of, 252–254
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Hedging:
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planning for, 255–258
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for portfolios, 251–252
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Herding, 138, 299n1
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HFoF (hedge funds of funds), 134
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Historical volatility, 60
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Hostile takeovers, 110
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The Human Face of Big Data (Rick
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Smolan), 114
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I
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IBM, 224–230, 299n5 (Chapter 5),
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301n6
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Idiosyncratic assets, 272
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Immediate realized loss (IRL), 180, 183
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Implied volatility:
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bid/ask, 149–151
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changing assumptions about, 60–64
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and short puts, 216–217
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Income, selling put options for, 23
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Indexing, closet, 133
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Insurance, 5, 250
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Insurance companies, 135, 136
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Intel, 175
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Interchangeable assets, 272–273
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Interest:
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calculating, 303n2
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options and payment on, 168
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prepaid, 170
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Interest rates, 67
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In-the-money (ITM) options:
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calls vs. puts, 27
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covered calls, 242
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defined, 13, 16, 17
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investment leverage for, 170–172
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levered strategy with, 176–180
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long calls, 189, 193–197
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long diagonals, 236
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long puts, 204
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managing leverage with, 183–184
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and market risk, 263–264
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pricing of, 56–59, 150
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protective puts, 249–251
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short puts, 213–215
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short-call spread, 222, 223
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time decay for, 66–67
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Intrinsic value, 56–59, 171
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Investing level and efficacy, 92,
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103–108
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Investment capital, leverage and,
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183–184
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Investment leverage, 163–185
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from debt, 165–166
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defined, 164
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managing, 183–185
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margin of safety for, 197–199
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measuring, 169–173
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from options, 166–168
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and portfolio management,
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196–197
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in portfolios, 174–183
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unlevered investments, 164–165
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Investment phase (investment stage),
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86, 93–96
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Investors:
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activist, 110
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risk-averse, 123, 125–127
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risk-neutral, 124–126
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risk-seeking, 123, 125–127
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IRL (immediate realized loss),
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180, 183
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ITM (see In-the-money options)
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