The following two-step binomial tree depicts the quarterly price path of an underlying share for an American call option. Each step represents a quarter of a year. The strike price of this option is $40 and the risk free rate is 5% pa. a) Calculate the payoff of the option at point (b). Give your answer in dollars and cents to the nearest cent. Payoff at point (b)= b) Calculate the value of the option at point (b). Give your answer in dollars and cents to the nearest cent. Value of the option at point (b)=$