Complex sentence: Bonds with embedded option can be valued using the lattice-based approach, as above, but additionally allowing that the option's effect is incorporated at each node in the tree, impacting either the bond price or the option price as specified.
Split into simpler sentences: Bonds with embedded option can be valued using the lattice-based approach. Here, the option's effect is incorporated at each node in the tree, impacting either the bond price or the option price as specified.