Option price under Binomial tree model

Dear guys:

I have one problem when calculate the call option price under binomial tree model (1) (Derivaties: option pricing model). I understand the concept under this method, but have confused when remember the method in Fix income, valuation the callable bond (2) (also using binomial tree method and using call rule). I think that, the call option price we find from (1), must be the same as the straight bond minus the callable bond in (2). But, actually, it’s not. Would you guys please give me an explanation ? Thanks in advance.

The binomial pricing model for an embedded option is different from an option pricing model.

be careful when valuing options in cfai eocq. the option value does equal the straight bond minus the callable bond, but in the binomial tree this only works at every time period for american options only. just like when working fixed income problems, for european options you need to value the call option from the last time node and work backwards

Oh God, i got it da_mad_tiki. Thank you so much, Da_mad_tiki, MrSmart.