13.6 The binomial model f 0 f=e-lpf +(l-plfdl Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 13.6 The Binomial Model S0u ƒu S0d ƒd S0 ƒ f=e-rT[pfu +(1-p)fd ]