Which of the following statements is correct for the binomial tree?

Please explain and justify your choice using your own words.

		A. As the real-world probability of an up movement in the underlying asset price increases, the value of a call and a put option change.
		B. When valuing options, risk preferences are NOT important.
		C. real-world probability of an up movement in the underlying asset price is relevant for pricing calls and puts, because we are valuing options in relative terms.
		D. As a stocks expected return increases, the price of an option written on this stock may either increase or decrease.