In an attempt to model the binomial lattice, I will have to generate the lattice data structure and decorate it with various properties(probabilities, prices, node Id’s etc), so I thought I would approach the problem by first generating the node Ids for each time-step. So here we go:

public void GenerateLatticeNodes()

{

var numberOfTimeSteps = 20;

var nodes = new Hashtable();

var nodeId = 1;

for (var i = 0; i < numberOfTimeSteps; i++)

{

var numberOfNodes = i + 1;

var nodesAtTimeStep = new int[numberOfNodes]; ;

for (var j = 0; j < numberOfNodes; j++)

nodesAtTimeStep[j] = nodeId++;

nodes.Add(i,nodesAtTimeStep);

}

//What no test?

}

For the moment this is just a collection of identifiers to which the object richness( the notion of a node having asset price, probability of up/down movement etc) will be added.

The node numbering scheme adopted is such that the initial node is 1 and subsequent nodes are numbered incrementally in an up/down fashion.

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