Question: Problem 2.29 Consider the four-step binomial tree displayed next. Starting at the root node (point A) you can go one step up (u) or one

Problem 2.29 Consider the four-step binomial tree displayed next. Starting at the root node (point A) you can go one step up (u) or one step down

(d) at each node. After four steps you arrive at one of the end points of the tree {0, 1, 2, 3, 4}.

(a) How many different paths are there from A to 3? Hint: Each path through the tree corresponds to a sequence of u’s and d’s.

(b) How many different paths are there from A to 3 that pass through B?

A B 3 2 0

A B 3 2 0

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