%% octave 4.0.0 code   by Dario Gasbarra dario.gasbarra@helsinki.fi  21.3.2016
## This program is free software; you can redistribute it and/or modify it under
## the terms of the GNU Lesser General Public License as published by the Free
## Software Foundation; either version 3 of the License, or (at your option) any
## later version.
##
## This program is distributed in the hope that it will be useful, but WITHOUT
## ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or
## FITNESS FOR A PARTICULAR PURPOSE. See the GNU Lesser General Public License
## for more details.
##
## You should have received a copy of the GNU Lesser General Public License
## along with this program; if not, see <http://www.gnu.org/licenses/>.
function  [gamma eta ]=hedging(F,S,B)
%%% it computes the hedging strategy ofthe option with
%%% price F on the binary tree. 
gamma=discreteGradient(F)./discreteGradient(S);
eta=(F-gamma.*S)./B;
endfunction