mktree

Create recombining binomial tree

Syntax

Tree = mktree(NumLevels,NumPos)

Tree = mktree(___,NodeVal,IsPriceTree)

Description

Tree = mktree(NumLevels,NumPos) creates a recombining tree Tree with initial values NodeVal at each node.

Tree = mktree(___,NodeVal,IsPriceTree) adds optional arguments for NodeVal and IsPriceTree.

Examples

Create Recombining Binomial Tree

Create a recombining tree of four time levels with a vector of two elements in each node and each element initialized to NaN.

Tree = mktree(4, 2)

Tree=1×4 cell array
    {2x1 double}    {2x2 double}    {2x3 double}    {2x4 double}

Input Arguments

NumLevels — Number of time levels of the tree

numeric

Number of time levels of the tree, specified as a scalar numeric.

Data Types: double

NumPos — Length of the state vectors in each time level

vector

Length of the state vectors in each time level, specified as a 1-by-NUMLEVELS vector.

Data Types: double

NodeVal — Initial value at each node of the tree

NaN (default) | numeric

(Optional) Initial value at each node of the tree, specified as a scalar numeric.

Data Types: double

IsPriceTree — Indicator if final horizontal branch is added to tree

0 (default) | logical

(Optional) Indicator if final horizontal branch is added to tree, specified as a scalar logical value.

Data Types: logical

Output Arguments

Tree — Bushy tree

struct

Bushy tree, returned as a tree struct with initial values NodeVal at each node.

Version History

Introduced before R2006a