Starting from:

$35

Project 2 Solution

. Create a factory class that builds a binomial tree given two parameters




a. T in integer to indicate the number of time periods. This is the depth or the length of the tree. The width the height of the tree at the time period T is 2^T.




b. P in integer between 0 and 100 to indicate the probability of up price movement. The probability of down price movement is 100-P.







Note: The factory needs to be implemented as public final class with a static method. Refer to the following as an example.







public final class BinaomialTreeFactory {




public static Node create(int T, int P) {




}




}







2. Create a navigator with one parameter N, for the number of iterations. For each iteration:




a. Starting from the root node, time zero, call the random function. If the number is between 0 and P, traverse to up-node for the next time period. If the number is between P and 100, traverse to down-node for the next time period.




b. Repeat step a, until the time T is reached.




c. While traversing the binomial tree, print Time Period, value generated by the random function, and the movement (UP or DOWN)

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