# -*- coding: utf-8 -*-
"""
Name : c10_22_binomial_graph.py
Book : Python for Finance (2nd ed.)
Publisher: Packt Publishing Ltd.
Author : Yuxing Yan
Date : 6/6/2017
email : yany@canisius.edu
paulyxy@hotmail.com
"""
import networkx as nx
import matplotlib.pyplot as plt
#
plt.figtext(0.08,0.6,"Stock price=$20")
plt.figtext(0.75,0.91,"Stock price=$22")
plt.figtext(0.75,0.87,"Option price=$1")
plt.figtext(0.75,0.28,"Stock price=$18")
plt.figtext(0.75,0.24,"Option price=0")
n=1
def binomial_grid(n):
G=nx.Graph()
for i in range(0,n+1):
for j in range(1,i+2):
if i<n:
G.add_edge((i,j),(i+1,j))
G.add_edge((i,j),(i+1,j+1))
posG={}
for node in G.nodes():
posG[node]=(node[0],n+2+node[0]-2*node[1])
nx.draw(G,pos=posG)
binomial_grid(n)
plt.show()
