Function to plot a Swaption Tree
swaptiontreegui()A plot of Swaption Tree with user specified parameters.
The user inputs are as follows: Face Value: to be entered in numbers for e.g. 120.50 Strike price: to be entered in numbers for e.g. 110.50 Rate per annum: to be entered in percent. For e.g. enter 5.0 for 5 percent u: up move factor- to be entered in decimals. For e.g. 1.25 d: down move factor- to be entered in decimals. For e.g. 0.80 q: probability of up move- to be entered in decimals. For e.g. 0.60 Swap Maturity: Clicking on the '+' and '-' respectively increases and decreases the value. Option Maturity: must be lesser than Swap Maturity. Clicking on the '+' and '-' respectively increases and decreases the value. Plot type: chosen between Swaption tree / Swap tree
David G. Luenberger, "Investment Science", 2/E, Oxford University Press, 2013.