20.19 Working Forward First work forwards through the tree calculating the max and min values of the path function" at each node Next choose representative values of the path function that span the range between the min and the max Simplest approach: choose the min, the max, and N equally spaced values between the min and max Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 20.19 Working Forward • First work forwards through the tree calculating the max and min values of the “path function” at each node • Next choose representative values of the path function that span the range between the min and the max – Simplest approach: choose the min, the max, and N equally spaced values between the min and max