Answer the Question Below:

5. High frequency trading Consider the following graph, which shows Humphry Incorporated's extremely volatile stock trend from 1 PM to 4 PM on a Tuesday. Each point on the graph represents a 15-minute time interval and the price the stock was tracked to be at that interval.Humphry Incorporated's Daily Stock Trend 10 CO PRICE (Dollars) 0 2 3 TIME (Hour in the day)If a trader developed a series of algorithms and bots to help her profit from predictable price trends, then which of the following algorithms would have resulted in the highest profit? (Note: Assume there were no transaction costs associated with the transactions and that purchase and sell orders occur immediately.) O If the price of Humphry Incorporated's stock decreases by exactly $1 in 15 minutes, take the short position on 1,500 shares. Then, if the stock price decreases below $2, offset the short position. O If the price of Humphry Incorporated's stock decreases by exactly $2 in 15 minutes, submit an order to purchase 3,000 shares. Then, if the stock price increases at all in any given 15-minute interval, submit an order to sell 3,000 shares. O If the price of Humphry Incorporated's stock decreases by exactly $2 in 15 minutes, submit an order to purchase 500 shares. Then, if the stock price increases by more than 100 percent in the last hour, submit an order to sell 500 shares. O If the price of Humphry Incorporated's stock decreases by exactly $1 in 15 minutes, submit an order to purchase 500 shares. Then, if the stock price increases by at least $4, submit an order to sell 500 shares