18.17 Alternative Binomial tree Instead of setting u =1/d we can set each of the 2 probabilities to 0.5 and (r-2/2)6+o√6 (r-a2/2)8t-σ√8 Options, Futures, and Other Derivatives, 5th edition C 2002 by John C Hull18.17 Options, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull Alternative Binomial Tree Instead of setting u = 1/d we can set each of the 2 probabilities to 0.5 and r t t r t t d e u e −s d −s d −s d +s d = = ( / 2) ( / 2) 2 2