Best Time To Buy And Sell Stock
To solve this coding challenge, we need to determine the maximum profit that can be made by buying and subsequently selling a stock on different days. The key constraint here is that we must buy the stock on a day before we sell it.
denotes the stock price on the ith day, we need to identify the best possible day to buy and the best possible future day to sell to maximize profit. We will employ a strategy that keeps track of the minimum price we've encountered so far as we iterate through the list, updating this minimum price along the way. Simultaneously, we'll keep a record of the maximum profit achievable by comparing the profit from the current day and the stored maximum profit.
Hereβs the step-by-step methodology to solve this problem:
Explanation
Given an array of prices whereprices[i]
- Initialization:
- Start by checking if the prices array is empty. If it is, return 0 as there is no way to make a profit.
-
Initialize
with the first day's price.
min_price -
Initialize
to 0, as no transactions have been done yet.
max_profit - Iterate Through Prices:
-
For each price in the array, check if it is lower than the current
. If so, update
min_price.min_price -
Calculate the potential profit by subtracting
from the current price.
min_price -
Compare this potential profit to the current
and update
max_profitif the new profit is higher.max_profit - Return the Results:
-
After iterating through all prices, return
which holds the maximum profit achievable.
max_profit -
Check if the
array is empty. This is crucial because an empty array signifies no stock prices available to analyze, leading to a direct return of 0, indicating no possible profit.
prices -
Initialize
to the first price in the array. This sets our baseline for the lowest price seen so far as we begin with the first day's price.
min_price -
Initialize
to 0, depicting no profit has been made yet. This will be the variable storing the highest profit as we iterate through the prices.
max_profit -
Begin a loop through each
in the
pricearray:prices -
Inside the loop, if the current
is less than
price, updatemin_priceto this new lower price. This ensures we are always buying at the lowest price observed up to the current point.min_price -
Calculate
as the difference between the current
potential_profitandprice. This represents the profit if we were to sell at the current day and had bought at the lowest price seen till now.min_price -
Compare
to
potential_profitand updatemax_profitif themax_profitis greater. This ensures that we are capturing the best possible profit scenario.potential_profit -
After completing the loop, return
, which now holds the highest profit possible from the given price sequence.
max_profit
Pseudocode with Comments
// Define the function to calculate the maximum profit
function maxProfit(prices):
// Check if the prices array is empty, return 0 since no transactions are possible
if prices is empty:
return 0
// Initialize minimum price to the first element in prices
min_price = prices[0]
// Initialize maximum profit to 0 since no transactions have occurred yet
max_profit = 0
// Iterate through each price in the list
for each price in prices:
// If the current price is less than the minimum price seen so far
if price < min_price:
// Update the minimum price to the current price
min_price = price
else:
// Calculate potential profit by selling at the current price
potential_profit = price - min_price
// Update the maximum profit if the potential profit is higher
if potential_profit > max_profit:
max_profit = potential_profit
// Return the maximum profit found
return max_profit