Otabek

There are several binomial models in the CFAI material. Backward induction on bonds is one and Options is another. They are calculated quite differently so I would not think that "just knowing the concept" will work here.

For example with options you need to know how to calc the down move and the risk neutral prob of up and down. Then you need to apply the probability to the option payoff not the value of the up and down figures.

Its not hard but if you don't know the steps you will miss and easy answer