Startup called Profit, has stock investment obtained frominvestors with the following exponential function,
V(t) is the value of your stock at time t in thousands dollarunits. You as a CEO of Profit are wondering when is the best timeto sell company stock with the highest value. Assume that thecontinuous interest rate is 5%. Questions :
a. What is the optimal time to sell the company stock?
b. Is it true that the time obtained from point a) is tomaximize the value of the stock when sold. Prove it!
c. What is the value of the shares (stock) with the time you gotin point a).
V(t) = 123V++123 eVt-0.123t
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