You are thinking about buying a call option with a strike price of $50 which expires in 2 months at t=2. The underlying asset for the call option is currently valued at $50 and is expected to follow a binomial process as shown below with equal probability at each branching of the tree. For example at time t=1 the underlying asset could be $70 or $35. What is the payoff to the call option at time t=2 for each outcome? In the answers shown below "top" refers to the topmost payoff and "bottom" refers to the bottom branch payoff.

Answer pool

top = 50, middle = 0, bottom = 0

top = 100, middle = 0, bottom = -25

top = 100, middle = 50, bottom = 25

top = 0, middle = 0, bottom = 0

top = 70, middle = 20, bottom = 0