How to loop binomial tree paths in R?

Question

Suppose it is a multi-period binomial tree, each period it can only go UP(Head) or DOWN(Tail). for a 3 period tree, there will be 2^3=8 scenarios/paths. For example, one of the path is all Heads, that is HHH, then there is HHT, HTH, HTT...

When the period gets large, it is easier to have a loop. Using R, how could I generate a large amount of binomial paths, then I can loop over these paths for other purposes.

Your questions is a bit unclear, I would suggest to add some reproducible example and some desired output — David Arenburg
– David Arenburg, Commented Oct 28, 2014 at 18:50

keegan · Accepted Answer · 2014-10-28 18:50:48Z

2

You may find the package gtools useful.

library(gtools)
permutations(2,3,c('H','T'),repeats.allowed=TRUE)
     [,1] [,2] [,3]
[1,] "H"  "H"  "H" 
[2,] "H"  "H"  "T" 
[3,] "H"  "T"  "H" 
[4,] "H"  "T"  "T" 
[5,] "T"  "H"  "H" 
[6,] "T"  "H"  "T" 
[7,] "T"  "T"  "H" 
[8,] "T"  "T"  "T"

For large N,

N<-20
paths=permutations(2,N,c('H','T'),repeats.allowed=TRUE)
for (i in 1:ncol(paths)){ 
    path<-paths[i,]
    # blah blah
}

answered Oct 28, 2014 at 18:50

keegan

3,0021 gold badge20 silver badges20 bronze badges

Sign up to request clarification or add additional context in comments.

Collectives™ on Stack Overflow

How to loop binomial tree paths in R?

1 Answer 1

Comments

Your Answer

Hot Network Questions

Collectives™ on Stack Overflow

1 Answer 1

Comments

Your Answer

Sign up or log in

Post as a guest

Related