Add training workflow, datasets, and runbook

training_data/curated/text/c71ad24b4ff3fa4195fb9e3c42e1806515b9889cab2be03e5da1e6f514599c59.txt

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+Chapter 1: Definitions 11 
+When a call has time remaining to its expiration date, its total price consists of 
+its intrinsic value plus its time value premium. The resultant call option price curve 
+takes the form of an inverted arch that stretches along the stock price axis. If one 
+plots the data from Table 1-4 on the grid supplied in Figure 1-2, the curve assumes 
+two characteristics: 
+1. The time value premium ( the shaded area) is greatest when the stock price and 
+the striking price are the same. 
+2. When the stock price is far above or far below the striking price (near the ends 
+of the curve), the option sells for nearly its intrinsic value. As a result, the curve 
+nearly touches the intrinsic value line at either end. [Figure 1-2 thus shows both 
+the intrinsic value and the option price curve.] 
+This curve, however, shows only how one might expect the XYZ July 50 call 
+prices to behave with 6 months remaining until expiration. As the time to expiration 
+grows shorter, the arched line drops lower and lower, until, on the final day in the life 
+of the option, it merges completely with the intrinsic value line. In other words, the 
+call is worth only its intrinsic value at expiration. Examine Figure 1-3, which depicts 
+three separate XYZ calls. At any given stock price (a fixed point on the stock price 
+scale), the longest-term call sells for the highest price and the nearest-term call sells 
+for the lowest price. At the striking price, the actual differences in the three option 
+prices are the greatest. Near either end of the scale, the three curves are much clos­
+er together, indicating that the actual price differences from one option to another 
+are small. For a given stock price, therefore, option prices decrease as the expiration 
+date approaches. 
+TABLE 1-4. 
+The prices of a hypothetical July 50 call with 6 months of time 
+remaining, plotted in Figure 1-2. 
+XYZ Stock Price 
+(Horizontal Axis) 
+40 
+45 
+48 
+➔SO 
+52 
+55 
+60 
+XYZ July 50 
+Call Price 
+(Vertical Axis) 
+2 
+3 
+4 
+5 
+61/2 
+11 
+Intrinsic 
+Value 
+0 
+0 
+0 
+0 
+2 
+5 
+10 
+Time Value 
+Premium 
+(Shading) 
+2 
+3 
+4 
+3 
+11/2 
+1