Final Project Report

This team is to create a simulation of a stock and bond market to be used as a teaching tool for students of finance. The simulation should be based on an accurate model of the markets. Included in this model is the ability of players to sell short, buy on margin, issue warrants, and borrow from a bank. Play is to be in rounds. Each round will include purchase and update portions. The change in stock values will incorporate the current market trend, a random factor, and the activity of that stock. Stock types should include blue chip, preferred, and speculative.

The simulation should be playable by multiple players and should incorporate artificial opponents if desired. The interface will be easily understood by a person with limited computer knowledge. The simulation is to be accompanied by documentation in the form of both a user’s manual and well commented code.

The team has taken a software engineering approach to the problem. We first broke the model down to its components and achieved a thorough knowledge of what our simulation is to do. We outlined the sequential flow of the simulation (see figure 1) and turned this into a useable physical model. We tested this model to ensure that the sequence previously outlined would work in a game type environment.

Once we had proven the feasibility of our model, we set about the task of preparing to code. The model was examined and any variables which would be needed were defined. At this point, the code was divided into modules which could be worked upon separately by one or two members of the group. The original plan had called for developing the code in a Matlab environment. Matlab was chosen for its matrix and graphical user interface (GUI) abilities. This solution has since been discarded in favor of using Visual Basic (VB). VB also has excellent GUI capabilities, but it also has the ability to create an executable file. If we were to use Matlab, the final product would be limited to only being used in that environment. Other advantages to VB are its short learning curve and its ability to easily interface with other Microsoft products.

The simulation will also be developed using Microsoft Access to store data. Access can be used in the development without requiring it during play. The computer players will be created using an original artificial intelligence (AI) algorithm. The basic flow for the AI algorithm can be seen in figure 2.

Testing has taken place throughout the development of the program. As individual modules are completed, they are tested before being placed with other portions of the program. Also, a basic program consisting of the ability to buy and sell and having only a single AI intelligence was initially completed. This was also tested by itself. As improvements were added, the program was tested further to ensure their correct operation.

Most of the testing has been by the designers. They attempted to simulate a majority of anticipated inputs that the program may come in contact with. The original plan called for extensive testing through user feedback. However, due to a longer than expected development cycle, this form of testing will be minimal.

Currently, the program is approaching completion and appears to be bug-free. We are developing the manual, which will accompany it, and are adding improvements to the AI and to the interface.

Continued maintenance after the product has been delivered is a problem with no easy solution. As the project is ending and most of the designers are graduating, the possibility of supplying continued support for the software is difficult. This problem has not yet been solved beyond providing a well designed, tested, and documented piece of software. We will leave our names and future addresses in the manual, but the quality of support will be limited by distance and time as we pursue our careers.

Monetary: This project should not require any purchases. The facilities provided by the university should take care of our needs.

Time: With four team members, we estimated an average of four hours per week for each person. This translates to approximately 200 man hours for the 2 semesters. The time required to complete various tasks have been estimated as follows (all figures are in hours):

Planning:	30
Research:	20
Programming:	50
Testing:	30
Documentation:	50

Total:	180

This total allows some room in case of emergencies and unplanned difficulties. Exact number of hours spent to date has not been kept track of. Planning and research tasks have been completed as scheduled without large time strains on the designers.

So far, the old PC game, "Stock Market: The Game" is the only game we have that is similar to what we want to do. We tried to find a board game that is similar to our design target. Yet, we have not been able to get it.

We were trying to find some similar games that had been written before. Professor Sheble gave us an old PC game, which was written in 1990, Starsoft Development Laboratories’ "Stock Market: the Game". The interface of the game provided us with some ideas about an interface. However, there are still a lot of aspects of the game interface that can be improved. Since we are possibly using Matlab, we can simply create push buttons on the screen, creating a more user-friendly interface.

Besides this, we also found some other online games. These games, listed below, are different from our simulation in that they base changes on actual market changes. We have not seen enough detail into the games to give any more specifics.

The Stock Market Game (SMG2000) is an electronic simulation of Wall Street trading designed to help students and adults understand the stock market, the costs and benefits involved in decision-making, the sources and uses of capital and other related economic concepts.

SMG2000 is a new version of The Stock Market Game. Students enter their transactions using the Internet and can access their portfolios the following business day. SMG2000 is also available for adults to participate in some states.

This game will more than likely be played by investors, brokers, university students in commerce degrees and anyone wanting to learn. The game familiarizes players with the New Zealand Stock Exchange, allowing for players to take risks for personal gains.

A new game will begin on the 1st of each month and last for 6 months. At the end of each game, all stocks will be converted to cash and the person with the greatest amount of money wins the prize!

STOCK-TRAK is a unique investment education tool where you can simulate managing an investment portfolio of stocks, options, futures, bonds, and mutual funds. (In plain English, they'll give you $100,000 in fake money in a brokerage account, and you can call a 1-800 number and pretend to buy and sell stocks and other securities.) STOCK-TRAK is a great way to test an investment strategy, learn about the financial markets, or, if you are a stockbroker, develop a track record with an independent 3rd party. STOCK-TRAK is currently used by nearly 10,000 college students each semester in their finance and investment courses.

Client Information
Associate Professor Richard B. Carter
372 Carver Hall,
Iowa State University
Ames, IA 50011
Office Phone: 515-294-9438
E-mail: rbcarter@iastate.edu

Professor Gerald B. Sheble
107 Coover Hall
Iowa State University
Ames, IA 50011
Office Phone: 515-294-3046
E-mail:sheble@iastate.edu

Professor Robert M. Anderson Jr.
303 Coover Hall
Iowa State University
Ames, IA 50011
Office Phone: 515-294-5991
Fax: 515-294-8432
E-mail: rmander@iastate.edu

Mike Felske 223 Hilltop Road Ames, IA 50014 Email: mzf@iastate.edu	Leong-Kui Lim 263 North Highland Apartment 8 Ames, IA 50014 E-mail: lklim@iastate.edu http://www.public.iastate.edu/~lklim
E-Feng (Steve) Leung Helser 1406 Davidson Ames, IA 50012 E-mail:pluto@iastate.edu http://www.public.iastate.edu/~pluto	Tim Simon Helser 1404 Davidson Ames, IA 50012 E-mail: tsimon@iastate.edu http://www.public.iastate.edu/~tsimon