Financial Derivatives Toolbox™

mktrintree - Create recombining trinomial tree

Syntax

TrinTree = mktrintree(NumLevels, NumPos, NumStates, NodeVal)

`NumLevels`	Number of time levels of the tree.
`NumPos`	`1`-by-`NUMLEVELS` vector containing the length of the state vectors in each time level.
`NumStates`	`1`-by-`NUMLEVELS` vector containing the number of state vectors in each time level.
`NodeVal`	(Optional) Initial value at each node of the tree. Default = `NaN`.

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

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

TrinTree = mktrintree(4, [2 2 2 2], [1 3 5 7]);