Which of the Following Statements Is Correct Regarding a Binomial

Multiple Choice

Which of the following statements is correct regarding a binomial option pricing model?

A) In case of a dollar dividend,lower the call price by the dividend amount.
B) In case of a dollar dividend,lower the put price by the dividend amount.
C) In case of a dollar dividend paid (at an intermediate date) at the end of some time period,lower the stock price by the dividend amount.
D) In case of a dollar dividend,the binomial stock price tree recombines.
E) None of these answers are correct..