function StochasticPricingModel()

p0=30;  % p0:  Price at t0
T=390;

muOrderTime=7;
muBuyOrigin=0.003;
muSellOrigin=0.003;
% nu=0.7;

if p0>5
    
    currentPrice(1)=p0;
    
    % Initialize the Bid and Ask Queues:
    buyQueue=zeros(1001,1);
    sellQueue=zeros(1001,1);
    
else
    
    disp('Equity price is too low!')
    return
    
end

% Model the order arrival times via an exponential distribution:
[absoluteArrivalTimes]=OrderArrivalTimes(T);

% Assign buy ("1") or sell ("0") actions to each order in absoluteArrivalTimes:
actionArray=(rand(size(absoluteArrivalTimes,2),1)<=0.5);

% Calculate the percentage of buy actions:
buyRatio=sum(actionArray)/size(absoluteArrivalTimes,2);

m=1;
figure
while m<size(absoluteArrivalTimes,2)
    
    if actionArray(m)==1  % If the order is a buy action
        priceTranslationVar=currentPrice(m)+exprnd(muBuyOrigin);
        nu=10.*abs(priceTranslationVar-currentPrice(m));
        p(m)=max(1,round(priceTranslationVar+0.5)-round(100.*chi2rnd(nu))/100);
        for j=1:round(p(m))
            if sellQueue(j)~= 0
                sellQueue(j)=sellQueue(j)-1;
                currentPrice(m+1)=j;
            end
        end
        if size(currentPrice,2)~=m+1
            buyQueue(round(p(m)))=buyQueue(round(p(m)))+1;
            currentPrice(m+1)=currentPrice(m);
        end
        
    else  % If the order is a sell action
        priceTranslationVar=currentPrice(m)-exprnd(muSellOrigin);
        nu=10.*abs(priceTranslationVar-currentPrice(m));
        p(m)=max(1,round(priceTranslationVar)+round(100.*chi2rnd(nu))/100);
        for j=1:round(round(p(m)))
            if buyQueue(j)~= 0
                buyQueue(j)=buyQueue(j)-1;
                currentPrice(m+1)=j;
            end
        end
        if size(currentPrice,2)~=m+1
            sellQueue(round(p(m)))=sellQueue(round(p(m)))+1;
            currentPrice(m+1)=currentPrice(m);
        end
    end
    
    plot(m,priceTranslationVar,'b.')
    hold on
    m=m+1;
    
end
axis([0 size(absoluteArrivalTimes,2) 0 (2*p0+1)])
grid on

figure
plot(absoluteArrivalTimes,currentPrice)
axis([0 size(absoluteArrivalTimes,2) 0 (2*p0+1)]) 
grid on

figure
hist(currentPrice)
grid on

figure
plot(0:49,sellQueue(1:50),'b')
hold on
plot(0:49,buyQueue(1:50),'r')
grid on

clear all