I have forgotten how to construct a binomial tree in reading 56. I had done this before that too from cfai. I understood how to construct a tree and value option free and bonds with embedded options. Today as I opened the book, I am unable to do it. I know rh rl stuff . If some one could explain exhibit 5 and 6 on page 296 of volume 5?
Know that formula 1/2 vh+c. Etc etc. What next
Got it I think. Gosh I am growing old.