ChuanYuan

Thank Roger:

I just figured it out. Your file is really helpful for me to check the results.

Thanks for your help. I will keep working on it.

I may ask you or on quantnet for further question as I move on. Hopefully you don't mind.

Best regards,

Yuan

Hi Yuan,
Just to make sure I'm clear what you're asking: are you talking about computing the risk neutral probability p with continuous dividends? If so, use (exp((r-q)dt) - d) / (u-d). If you're asking about discrete dividends, I have not tried it yet.

rog