Construct a diffusion tree of prices

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Question - Construct a diffusion tree of prices and probabilities for an asset tree using the following information:

Starting Price (period 0) 100

Diffusion rate 4.00%

Probability of a price rise 0.6

Number of periods (from 0 to 7) 8

Steps (after period 0) 7

Reference no: EM133162038

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