Question 1 5 points Which of the following statements is correct for the binomial tree? The real-world probability of an up movement in the underlying asset O price is irrelevant for pricing calls and puts, because we are valuing options in absolute terms. As a stock's expected return increases, the price of a call option written on this stock increases. As the real-world probability of an up movement in the underlying asset price increases, the value of a call and a put option do NOT change. O When valuing options, risk preferences are important. Please explain and justify your choice using your own words