A Call Option Has an Exercise Price of $30

Multiple Choice

A call option has an exercise price of $30.The stock price at a point on the binomial tree is $36.24.The calculated present value of the option at that same point is $5.86.What figure should be used to calculate option prices at points moving toward the final price?

A) $5.86
B) $6.24
C) $6.62
D) $7.01