Fixed income - cap and floor rates in floating rate notes.

So I have not see this in any of the schweser material and it’s not in the CFAI LOS (I think) but there’s a few practice problems and a few pages devoted to this material in reading 37.

I am having difficulty using the binomial interest rate model to value these. How come there are two branches at the end of the maturities, compared to the fixed rate bonds that only have one (the value of the bond at maturity).

i types this on my phone so it may help if I paste a picture when I get back to my computer.

if anyone knows what I am talking about I would greatly appreciate your input on how to value these.