*3.1. Initial Settings*

We generate a stock price *history* by simulating a random initial price between \$5 and \$400. The series of daily prices is generated by drawing from a normal distribution whose mean is the previous day's price. The final price in the 20-day price history is the *initial price* of the stock for the simulation. We also randomly generate the *fundamental value* of the stock, or how much the stock should actually be worth given the value of the company. The fundamental value of the stock on the first day of our simulation is a price uniformly chosen at random within ±8% of the initial price in the market. Then each day after that, the fundamental value is a random value within ±8% of the value the day before.
