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thanks for the confirmation.

Is it conditional upon survival (1-h) up until time t, in other words tis relates to P(t*, cond(t>t*<t+tau))?

Sorry, probably an obvious answer but Conditional PD is conditional upon what?

Thanks @Nicole for the help.

I am trying to locate the merton model learning spreadsheet mentioned in the study material but cannot locate it. Can someone help me please? :)

Thanks David, this is what I thought too. In the question I was working on, the probabilities were provided as real world 50/50%. However i discounted the option intrinsic value via backward induction, however the answer did not do this. It just gave the weighted average of the future...

Hi, I have had a quick search but not found the answer. When pricing options using the binomial method, are you supposed the discount future option pricing back to current node using relevant discount rates? I have seen an example where this is not done (the current value is just a weighted...