When doing callable/putable binomial trees, if we are told that a bond is callable/putable and there is no specification as to when it is callable/putable (in two years, one year, every coupon date, etc) should we assume that it can be called today? FOr example, you do backward induction to find the value of a callable bond today is $100.57. THe problem says that it is callable at 100. Obviously if it says it is callable today you say that the value is $100. But if it does not say that, can you assume it is callable today and say the value is $100? A problem in Qbank did not specify and the solution was that the answer was $100, so I am lead to beleive that you should believe that it is callable at any date unless told otherwise.
.nevermind.
didnt see what you posted, im assuming u werent too comfortable with it ha