Here's the code.
Code: Select all
\begin{frame}
\frametitle{Asset Modeling}
\begin{center}
\begin{tikzpicture}[>=stealth,sloped]
\matrix (tree) [%
matrix of nodes,
minimum size=1 cm,
column sep=2.5 cm,
row sep=.25cm,
]
{
& & $S(0)(1+a)^2$ \\
& S(0)(1+a) & \\
S(0) & & S(0)(1+a)(1+b) \\
& S(0)(1+b) & \\
& & $S(0)(1+b)^2$ \\
};
\draw[->] (tree-3-1) -- (tree-2-2) node [midway,above] {$p$};
\draw[->] (tree-3-1) -- (tree-4-2) node [midway,below] {$(1-p)$};
\draw[->] (tree-2-2) -- (tree-1-3) node [midway,above] {$p^2$};
\draw[->] (tree-2-2) -- (tree-3-3) node [midway,below] {$(1-p)p$};
\draw[->] (tree-4-2) -- (tree-3-3) node [midway,above] {$(1-p)p$};
\draw[->] (tree-4-2) -- (tree-5-3) node [midway,below] {$(1-p)^2$};
\end{tikzpicture}
\end{center}
\end{frame}