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Diagramming Trees

Posted: November 28th, 2002, 4:53 am
by kaikow
Are there any add-ins for Excel that would facilitate producing binomial tree diagrams such as figure 18.7 (lines connecting the nodes) and figure 18.5 (arrows connecting cells) in the 5th edition of Hull's Options, Futures, and Other Derivatives?I don't see anf built-in Excel chart types that appear to do these types of figures.

Diagramming Trees

Posted: November 28th, 2002, 7:47 am
by mj
in excel 2000 there's a drawing toolbar you can find by going view and then toolbars,MJ

Diagramming Trees

Posted: November 28th, 2002, 3:16 pm
by kaikow
Yes, but I do not see a way to use the Drawing toolbar to automatically draw a tree.Manual generation would be very time consuming.

Diagramming Trees

Posted: November 29th, 2002, 12:13 pm
by grabben
Hi kaikow!If you can create the nodes of the Binominal tree, it's quite easy to create the tree in excel using the Line-chart. The easiest way to do it is to create two copy's of the nodes, one top-aligned and one bottom-aligned, select them both and just create the chart using the chart wizard (I think it's called that...). Just remember to order the series by rows. I've included an example.

Diagramming Trees

Posted: November 29th, 2002, 11:07 pm
by kaikow
Thanx.I'll give it a try.