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Begin with the contract amounts
Review the expiry-payoff lesson and calculate the strike-100 call and put at 130/80. Keep the current premium or price question separate from these terminal amounts.
Inspect the model domain
Record current underlying, states and the whole-period factor. Check the grown current price lies inside the interval. Try the outside-domain example and explain why clamping its derived weight changes the record.
Reconstruct both valuation routes
Complete the call and put check sheets using the holding and cash equations. Verify both state residuals, then compare current replication cost with the weighted discounted claim. Explain the units of delta and the date of cash.
Finish with the distinction between measures
Compare actual and pricing expectations without claiming the model predicts a branch frequency. Complete the two practice sets and return to the relevant equation when a wrong alternative exposes a sign, date or scope error.