246.EXPLANATIONTHE TREE WILL HAVE THREE NODAL PERIODS

98. - CFA 2018 QUESTION BANK 02 THE ARBITRAGE FREE VALUATION FRAMEWORK
CFA 2018 QUESTION BANK 02 THE ARBITRAGE FREE VALUATION FRAMEWORK

98.246.

Explanation

The tree will have three nodal periods: 0, 1, and 2. The goal is to find the value at node 0. We know the value at all nodes in nodal period