The first two tradable products are introduced: STARFRUIT and AMETHYSTS. While the value of the AMETHYSTS has been stable throughout the history of the archipelago, the value of STARFRUIT has been going up and down over time. Develop your initial trading strategy and write your first Python program to get off to a good start in this world of trading and market making. Even if the price of a product moves very little or in a very unpredictable way, there might still be clever ways to profit if you both buy and sell.
Position limits for the newly introduced products:
STARFRUIT: 20AMETHYSTS: 20With a large school of goldfish visiting, an opportunity arises to acquire some top grade SCUBA_GEAR. You only have two chances to offer a good price. Each one of the goldfish will accept the lowest bid that is over their reserve price. You know there’s a constant desire for scuba gear on the archipelago. So, at the end of the round, you’ll be able to sell them for 1000 SeaShells ****a piece.
Whilst not every goldfish has the same reserve price, you know the distribution of their reserve prices. The reserve price will be no lower than 900 and no higher than 1000. The probability scales linearly from 0 at 900 to most likely at 1000.
You only trade with the goldfish. Bids of other participants will not affect your results.
Think hard about how you want to set your two bids in order to walk away with some serious SeaShell profit.