SpyAli

why would teh FI model be harder...

in the options one (stock options), you have to calculate the up or down as well as probabilities

in the fixed income one, you are given a tree, probability is assume 50% up and 50% down (unless told otherwise which is unlikely)

you start at the end of the tree, cause you know for sure at expiration you will get (face value+coupon) and you work your way back...easy

study it then ask here...