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Confirm the input dates and units
Current underlying price, terminal prices and claim amounts use one compatible per-unit basis. The risk-free factor covers the modeled interval. Resolve income and exercise assumptions before applying the introductory European/no-income calculation.
Check each computational layer
| Layer | Check |
|---|---|
| State domain | Lower < current×factor < higher? |
| Weight | Underlying pricing equation satisfied? |
| Hedge holding | Claim difference divided by price difference? |
| Cash | Current and terminal amounts distinguished? |
| Replica | Both state payoffs match? |
| Current price | Replication and weighted discount agree? |
Keep forecasts out of the pricing label
Derived weights are not observed frequencies. An actual expected payoff requires its own probability assumption and valuation interpretation. A zero in the supplied support is not a conclusion about every possible market outcome.
Record what needs another model
Additional states, early exercise, underlying income, unequal financing rates and transaction constraints are not repaired by relabeling the simple result. Keep those unresolved features visible.