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Keep every amount on its date
Current underlying price is a time-zero value; higher and lower prices are terminal inputs. The period factor connects those dates. A longer-horizon quote or a current intrinsic amount cannot silently replace a terminal-state input.
Understand why a record is rejected
The selected model requires two distinct possible states and interior pricing weights. If the grown current price lies outside or at the endpoints, the tool does not clamp the weight. Review conventions and model assumptions before changing the inputs.
Interpret the replicating components
| Row | Meaning |
|---|---|
| Pricing weights | Derived from the underlying consistency equation |
| Underlying units | Holding per claim, possibly negative |
| Current cash | Funding component; negative means modeled borrowing |
| Model value | Weighted and discounted claim amount |
| State table | Replica checked against both claim amounts |
Keep the result bounded to its model
The branch diagram has exactly the supplied states. It is not a full price-distribution forecast, and a zero payoff in both states is not a universal zero-value conclusion for a real option. Inputs and scope determine the result.