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LESSON 345 OF 409 · DYNAMIC PROGRAMMING

Best Time to Buy and Sell Stock II - C++ Solution and Time Complexity Analysis

Practice O(n2) Read the full explanation

Say you have an array prices for which the i-th element is the price of a given stock on day i.

Design an algorithm to find the maximum profit. You may complete at most k transactions.

Note:
You may not engage in multiple transactions at the same time (i.e. you must sell the stock before you buy again).

Example 1:

Input: prices = [2,4,1], k = 2
Output: 2
Explanation: Buy on day 1 (price = 2) and sell on day 2 (price = 4), profit = 4-2 = 2.

Example 2:

Input: prices = [3,2,6,5,0,3], k = 2
Output: 7
Explanation: Buy on day 2 (price = 2) and sell on day 3 (price = 6), profit = 6-2 = 4.
             Then buy on day 5 (price = 0) and sell on day 6 (price = 3), profit = 3-0 = 3.
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    C++ · DYNAMIC PROGRAMMING

    Best Time To Buy Stock in C++, explained

    Understanding the Problem

    The core challenge of this problem is to maximize the profit by buying and selling stocks given the constraint of at most k transactions. This problem is significant in financial markets where traders aim to maximize their returns. A common pitfall is to misunderstand the constraint of not engaging in multiple transactions simultaneously.

    Approach

    To solve this problem, we need to consider both a naive and an optimized approach:

    Naive Solution

    The naive solution involves trying all possible pairs of buy and sell days, which is not optimal due to its high time complexity of O(n^2). This approach is impractical for large inputs.

    Optimized Solution

    We can use dynamic programming to optimize the solution. The idea is to maintain two arrays: one for the maximum profit up to day i with at most j transactions, and another for the maximum profit up to day i with exactly j transactions.

    Algorithm

    Here is a step-by-step breakdown of the optimized algorithm:

    1. Initialize a 2D array dp where dp[i][j] represents the maximum profit up to day i with at most j transactions.
    2. Iterate over the number of transactions from 1 to k.
    3. For each transaction, iterate over the days and calculate the maximum profit by considering whether to sell on that day or not.
    4. Update the dp array accordingly.

    Code Implementation

    #include <vector>
    #include <algorithm>
    using namespace std;
    
    // Function to calculate the maximum profit
    int maxProfit(int k, vector<int>& prices) {
        int n = prices.size();
        if (n == 0) return 0;
    
        // If k is greater than n/2, it's equivalent to unlimited transactions
        if (k >= n / 2) {
            int maxProfit = 0;
            for (int i = 1; i < n; ++i) {
                if (prices[i] > prices[i - 1]) {
                    maxProfit += prices[i] - prices[i - 1];
                }
            }
            return maxProfit;
        }
    
        // DP array to store the maximum profit
        vector<vector<int>> dp(k + 1, vector<int>(n, 0));
    
        for (int i = 1; i <= k; ++i) {
            int maxDiff = -prices[0];
            for (int j = 1; j < n; ++j) {
                dp[i][j] = max(dp[i][j - 1], prices[j] + maxDiff);
                maxDiff = max(maxDiff, dp[i - 1][j] - prices[j]);
            }
        }
    
        return dp[k][n - 1];
    }
    

    Complexity Analysis

    The time complexity of the optimized solution is O(k * n), where k is the number of transactions and n is the number of days. The space complexity is also O(k * n) due to the 2D DP array.

    Edge Cases

    Consider the following edge cases:

    • Empty price array: The output should be 0.
    • Single day price: The output should be 0 as no transactions can be made.
    • k greater than n/2: The algorithm should handle this by treating it as unlimited transactions.

    Testing

    To test the solution comprehensively, consider the following test cases:

    • Simple cases with small arrays.
    • Cases with increasing and decreasing prices.
    • Cases with random prices and varying k values.

    Thinking and Problem-Solving Tips

    When approaching such problems, consider breaking down the problem into smaller subproblems and using dynamic programming to optimize the solution. Practice similar problems to improve your problem-solving skills.

    Conclusion

    In this blog post, we discussed the problem of finding the best time to buy and sell stock with at most k transactions. We explored both naive and optimized solutions, provided a detailed algorithm, and analyzed the complexity. Understanding and solving such problems is crucial for improving algorithmic thinking and problem-solving skills.

    Additional Resources

    For further reading and practice, consider the following resources:

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