A stock price is $60 and the present value of dividends during the life of an option is $2. Which of the following is the way to construct a binomial tree to value the option?

Group of answer choices

Draw a tree for an initial stock price of $58 and then add at each node the present value of the remaining dividends.

Draw a tree for an initial stock price of $62 and then subtract at each node the present value of the remaining dividends.

Draw a tree with an initial stock price of $58 and do not add or subtract any remaining dividends.

Draw a tree for an initial stock price of $60 and do not add or subtract any remaining dividends.