A tiny financial model. To investigate investment strategies, consider the following: You can choose to invest your money in one particular stock or put it in a savings account. Your initial capital...

A tiny financial model. To investigate investment strategies, consider the following: You can choose to invest your money in one particular stock or put it in a savings account. Your initial capital is 1000. The interest rate r is 0.5% per month and does not change. The initial stock price is 100. Your stochastic model for the stock price is as follows: next month the price is the same as this month with probability 1/2, with probability 1/4 it is 5% lower, and with probability 1/4 it is 5% higher. This principle applies for every new month. There are no transaction costs when you buy or sell stock. Your investment strategy for the next 5 years is: convert all your money to stock when the price drops below 95, and sell all stock and put the money in the bank when the stock price exceeds 110. Describe how to simulate the results of this strategy for the model given