The following two-step bincenial tree depicts the quarterly price path of an underiying share for an American call option. Each step represents a quarter of a year. The strike price of this 0p tion is $40 and the risk free rate is 7% pa. a) Calculate the payoff of the option at poitt (o). Give your answer in dollars and cents to the nearest cent, Payoff at point (b)=5 b) Calculate the value of the option at point (b). Give yout answer in dolars and cerits to the mearest cent. Value of the option at point (b)=$