Final General Python

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Binghamton University *

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311

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Industrial Engineering

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Jan 9, 2024

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docx

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PYTHON SECTION Question 1 (5 points) Define a function called “max_loan”. This function takes one input ( current_amt ) and tells you how much you can borrow on a blockchain lending application. The function should print and return the maximum size of a loan you can receive, given your current amount of money ( current_amt ). Assume that the collateralization ratio for borrowing is 1.5. This means that for every $1 you borrow, you must supply $1.5. max_loan (750) should print and return the value 500.0 Use a print statement to explain how this function applies topics studied in our class. Question 2 (5 points) Define a function called “max_loan_vol”. This function takes two inputs ( current_amt, volatility ) and tells you how much you can borrow on a blockchain lending application. The function should print and return the maximum size of a loan you can receive, given your current amount of money ( current_amt ) and its volatility ( volatility ). Assume that the collateralization ratio is 1.25 * (1 + volatility). This means that for every $1 you borrow, you must supply $1.25 if the volatility is 0. If the volatility is 0.25, you must supply 1.25 * (1 + 0.25) for every $1 you borrow. max_loan(1000, 0.25) should print and return the value 640.0 Use a print statement to explain how this function applies topics studied in our class. Why should volatility be an important input to determine how much you can borrow?
Question 3 (5 points) Define a function called “dex”. This function takes three inputs ( dai, eth, exchange) and tells you how the liquidity pools of the dex change in response to someone exchanging ETH for DAI using the constant product rule. dai is the amount of DAI in the liquidity pool before the exchange happens. eth is the amount of ETH in the liquidity pool before the exchange happens. exchange is the amount of ETH that a trader is providing to the liquidity pool in exchange for DAI. The function should print the following: The old liquidity pool had xxx ETH and xxx DAI You exchanged xxx ETH for xxx DAI The new liquidity pool has xxx ETH and xxx DAI dex(5000, 300, 50) should print ‘The old liquidity pool had 300 ETH and 5000 DAI’ ‘You exchanged 50 ETH for 714.2857142857147 DAI’ ‘The new liquidity pool has 350 ETH and 4285.714285714285 DAI’ Use a print statement to explain how this function applies topics studied in our class.
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