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Binomial Trees in CM2A

A

AaronD

Member
Hi there,

If we are asked to create a binomial tree, can we use a flowchat in word or what is the best way to draw this in word?

Many thanks,
Aaron
 
S0....S0u....S0u^2
........S0d....S0ud
.................S0d^2

This forum doesn't allow multiple consecutive spaces, so the dots above are only required here to align the values!
The Examiner's Reports from the past have just tabulated the values; flowcharts would take too long.
 
Hi Steve, would pasting a binomial tree created in Excel be okay in the part A exam if we explain how each step is calculated?
 
Only the IFoA can say what is and what isn't acceptable - everyone else can provide only interpretation and speculation.
Copying values from Excel (like "0.987564") is equivalent to copying the output from your old Casio FX calculator, so that can't pose a problem. Copying anything else from Excel (like cells, equations or charts) increases the risk of your script being deemed to have broken the rules after the fact.
I would play it safe and use Excel as a single-line calculator for Paper A rather than as a full-blown spreadsheet solution.
 
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