IJSSER

Title: MODELLING A REVENUE MAXIMISING RELATIONSHIP BETWEEN THE VOLUME OF A TRADEABLE ASSET SOLD AND THE APPRECIATION IN THE ASSET’S PRICE
Authors: Arav Rajesh
\|\| \|\|
Arav Rajesh The Shri Ram School, Moulsari, Gurugram, New Delhi ,India
MLA 8 Rajesh, Arav. "MODELLING A REVENUE MAXIMISING RELATIONSHIP BETWEEN THE VOLUME OF A TRADEABLE ASSET SOLD AND THE APPRECIATION IN THE ASSET’S PRICE." Int. j. of Social Science and Economic Research, vol. 7, no. 5, May 2022, pp. 1424-1446, doi.org/10.46609/IJSSER.2022.v07i05.018. Accessed May 2022. APA 6 Rajesh, A. (2022, May). MODELLING A REVENUE MAXIMISING RELATIONSHIP BETWEEN THE VOLUME OF A TRADEABLE ASSET SOLD AND THE APPRECIATION IN THE ASSET’S PRICE. Int. j. of Social Science and Economic Research, 7(5), 1424-1446. Retrieved from https://doi.org/10.46609/IJSSER.2022.v07i05.018 Chicago Rajesh, Arav. "MODELLING A REVENUE MAXIMISING RELATIONSHIP BETWEEN THE VOLUME OF A TRADEABLE ASSET SOLD AND THE APPRECIATION IN THE ASSET’S PRICE." Int. j. of Social Science and Economic Research 7, no. 5 (May 2022), 1424-1446. Accessed May, 2022. https://doi.org/10.46609/IJSSER.2022.v07i05.018.
References [1]. Haese, Michael, et al. Mathematics: Applications and Interpretation HL. 2: For Use with IB Diploma Programme. Marleston, Sa, Haese Mathematics, 2019. [2]. Haese, Michael, et al. Mathematics Core Topic HL 1. 2019. 1st ed., Haese& Harris Publications, 2019. [3]. Stewart, James. CALCULUS: Early Transcendentals. S.L., Cengage Learning, 23 Jan. 2020. [4]. Yahoo! Finance. “Bitcoin USD (BTC-USD) Price History & Historical Data - Yahoo Finance.” Finance.yahoo.com, 23 Mar. 2022, finance.yahoo.com/quote/BTC-USD/history?period1=1640131200&period2=1647993600&interval=1d&filter=history&frequency=1d&includeAdjustedClose=true. Accessed 2 Apr. 2022.
ABSTRACT: Through the application of financial mathematics, this paper explores how mathematical modelling can be used to benefit from favourable conditions in financial markets like asset appreciations. Given that assets should be sold upon the appreciation of their price, this paper aims to find a mathematical relationship between the increase in the price of an asset and the specific amount that should be liquidated in order to maximise revenue. After analysing the data, this paper concludes that if ??denotes the appreciation in price, ?(??) the amount liquidated, ? is a constant representing the maximum possible value of ?? and ? is the minimum value of ?(??), then ?(??) = (100??)(?+1)?? (?+1) ? (?+1) (?+1) + ? such that ? (???????? ?????? ?? ?? ????????) ?? ??????? ???? ? where ? is the minimum value of ? at which ? ?(??) = ?(??(?)???(100))×100 ? The results from this modelling process are highly applicable in day trading, where prices of assets such as foreign exchange and cryptocurrency fluctuate in the short run, and in conceptualising trading strategies which favour short-term revenue inflows.

IJSSER is Member of