9.12 Generalization (continued) Substituting for A we obtain f=lp fu+(1-pfd je-rt Where u-O Options, Futures, and Other Derivatives, 4th edition@ 2000 by John C. Hull Tang Yincai, Shanghai Normal UniversityOptions, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, Shanghai Normal University 9.12 Generalization (continued) • Substituting for D we obtain ƒ = [ p ƒu + (1 – p )ƒd ]e–rT where p e d u d rT = − −