binomial tree 
Author Message
 binomial tree

Can anybody help me to construct a binomial tree?
It' simply a two dimentional table, which should be constructed and filled
by computer itself.
Four figures are given- the number of columns (or steps), the initial value
(or price at step 0) and the up and down coefficients (something like u=1,05

The level of the price at each node (i,j) is S(i,j)= S*u^j*d^(i-j). "node"
means that column 0 contains only one element, while column 1 - 2 elements
(S(0,0)*u and S*d), then column 2 contains 4 elements, etc.

My problem is that i don't arrive to create a viable "Table" variable nor
can I write a proper loop for it (with the above formulae). Does anybody
have an idea?

Thank you in advance.

Fri, 18 Apr 2003 04:45:10 GMT  
 [ 1 post ] 

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