In the simpest case:

1)All nodes are governed by analytics that specify the value of an "up move"
and the tha value of a "down move".... for example
UP = 1.1
Down = 0.909

2) In all cases the starting value is given

3) 100 * (Up=1.10) gives 110
100* (Down = 0.909) give `90
110 * (Up = 1.10) gives 121 ( note 100 * UP*UP = 121)
110*(Down =0.909) gives ~100
90* (UP=1.1) gives ~ 100
90* (DOWN = 0.909) gives ~ 81

The example above is refereed to as "Recombining" since 100*UP*DOWN yield 100.


The UP and Down parameters can vary, by period, in more complex situations.
Thus the tree is "not recombining"

Luke

"Barb Reinhardt" wrote:

I suspect you'll need to have a different data series for each line. How
do you determine which nodes are connected to one another?

"Luke Spar UTAFortWorth" <Luke Spar
wrote in message ...
Would like to use XL to create a connected graph ( finance calls it a
binomial lattice). X axis iis the time period t=1,2,3,...T, Y is value.

XY scatter plots points OK. Need to connect points (nodes)--each node
except
for t=T has two lines coming out of it.
A 3-peiod example is shown below. Eventually need to generalilze.

Data is
reference T Value
NOde 1... 0 100
NODE 2... 1 110
NODE 3... 1 90
NODE 4... 2 121
NODE 5... 2 100
NODE 6... 2 81

FOR NOW:
want a line to connect NODE 1 to NODE 2
want a line to connect NODE 1 to NODE 3
want a line to connect NODE 2 to NODE 4
want a line to connect NODE 2 to NODE 5
want a line to connect NODE 3 to NODE 5
want a line to connect NODE 3 to NODE 6

Suggestions would be greatly appreciated.

Luke