Trying to create Binomial tree

Question

I would love to have a nice tikz-version of this drawing of a binomial tree.

and my lines are not that nice, can anybody help me

So far I've made the following:

\documentclass{standalone}
\usepackage{graphicx}
\usepackage{subfig}
\usepackage{pgf,tikz}
\usetikzlibrary{positioning}
\begin{document}
% Set the overall layout of the tree
\tikzstyle{level 1}=[level distance=2cm, sibling distance=2cm]
\tikzstyle{level 2}=[level distance=2cm, sibling distance=2cm]
\tikzstyle{level 3}=[level distance=2cm, sibling distance=2cm]
% Define styles for bags and leafs
\tikzstyle{bag} = [text width=2em, text centered]
\tikzstyle{edge from parent}=[draw]
\tikzstyle{end} = [text width=3em, text centered]
%\tikzstyle{every node}=[fill=red!30,rounded corners]
% The sloped option gives rotated edge labels. Personally
% I find sloped labels a bit difficult to read. Remove the sloped options
% to get horizontal labels.
\begin{tikzpicture}[grow=right, sloped, edge from parent]
\node[bag] {$S_{0}$} % First bag
child{node[bag] {$S_{0}d$} % Step 1 down
   child{node[bag]{$S_{0}d^{2}$} % step 2 down
       child{node[end]{$S_{0}d^{3}$}} % step 3 down
       child{node[end] {}} % step 3 up
       }
   child{node[bag] {} % step 2 up
       child{node[end]{}} %step 3 down
       child{node[end] {}} %step 3 up
           }
  }
   child {node[bag] {$S_{0}u$} % step 1 up
      child{node[bag]{$S_{0}ud$}
          child{node[end]{$S_{0}ud^{2}$}} % step 3 down
          child{node[end]{}} % step 3 up
          } % step 2 down
        child{node[bag ]{$S_{0}u^{2}$} % step 2 up
           child{node[end]{$S_{0}u^{2}d$}} % step 3 down
           child{node[end]{$S_{0}u^{3}$}} % step 3 up
       }
  };
  \end{tikzpicture}
\end{document}

Does this answer your question? How to use Tikz and macros to very efficiently draw recombining binomial trees when taking notes during class — JeT, Jun 16 '20 at 16:11
Welcome to this site! https://tex.stackexchange.com/questions/227414/draw-5-period-binomial-tree will certainly answer your question. As a new user it's also very convenient to check site:tex.stackexchange.com <search term(s)> via google. You'll find plenty of ressource. — JeT, Jun 16 '20 at 16:13

score 1 · Accepted Answer · answered Jun 16 '20 at 13:27

1

You can add

  edge from parent/.style={draw,
    edge from parent path={
      (\tikzparentnode.east) -- (\tikzchildnode.west)
    }
  }

in the option list of tikzpicture.

answered Jun 16 '20 at 13:27

ZhiyuanLck

4,516

Thank you :) it worked !!! – GHG Jun 16 '20 at 15:35
@GHG If the answer solved your problem, please consider accepting it by clicking on the check mark on its left. – Jun 16 '20 at 17:17

Trying to create Binomial tree

1 Answers1