Answer the questions in Problem 5 by constructing a 6-step binomial tree. As in the text, t

Answer the questions in Problem 5 by constructing a 6-step binomial tree. As in the text, Δt must equal T/n where n is the number of steps. Then all the parameters must be converted to use the same time units.

Data from in Problem 5 

Starting from S₀ = 100, run 10,000 trials of a GRW with the following parameter sets (take Δt = 1/365 in every case). What fraction of outcomes are greater than S₀? less than S₀? equal to S₀? 

(a) μ = 0, σ = 1, nDays = 30 

(b) μ = 0, σ = 1, nDays = 180 

(c) μ = 0, σ = 0.2, nDays = 30 

(d) μ = 0, σ = 0.2, nDays = 180 

(e) μ = 0.1, σ = 0.2, nDays = 30 

(f) μ = 0.1, σ = 0.2, nDays = 180