kamara5

Thanks to both of you guys.

Ohai, what you said is completely logical and if the example stated the down-move factor explicitly as 1/1.01, the example would have made perfect sense but the description of the case starts out by indicating that the value can either increase by 1% or decrease by 1%. The very same description is again provided in the key concepts section of the reading, however, this time they state the U and D as 1.01 and 1/1.01 respectively instead of providing an absolute percentage for either side.

Thank you again.