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Computers and Technology, 02.04.2021 21:30 carolinagarciap8kgmi
[Commodity trading under stochastic price]: Suppose we hold a stock at our portfolio and going to decide whether we should sell it or buy more in the following 5 days. We know that at the after 5 day of trading there will be $5 dividend for each unit of stock we are holding at our portfolio. However, holding one unit of stock at our portfolio costs $1 to us, and there is no transaction cost of selling and buying. Due to restrictions, we can hold at most 5 stocks. Suppose we believe that price of the stock is equally likely to be 2, 3, 4, or 5. Create a Python program that maximizes your profits from trading the commodity over the next 5 days.
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