mktree (Financial Derivatives Toolbox)

Create recombining tree

Syntax

Tree = mktree(NumLevels, NumPos, NodeVal, IsPriceTree)

Arguments

NumLevels
Number of time levels of the tree.

NumPos
1-by-NUMLEVELS vector containing the length of the state vectors in each time level.

NodeVal
Initial value at each node of the tree. Default = NaN.

IsPriceTree

Boolean determining if a final horizontal branch is added to the tree. Default = 0

`NumLevels`	Number of time levels of the tree.
`NumPos`	`1`-by-`NUMLEVELS` vector containing the length of the state vectors in each time level.
`NodeVal`	Initial value at each node of the tree. Default = `NaN`.
`IsPriceTree`	Boolean determining if a final horizontal branch is added to the tree. Default = `0`

Description

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

Examples

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

```
Tree = mktree(4, 2) 
```

See Also

treepath, treeshape

mkbush mmktbybdt