Which of the following statements concerning the calculation of value at a node in a fixed income binomial interest rate tree is most accurate? The value at each node is the:
　　A. present value of the two possible values from the next period.
　　B. average of the present values of the two possible values from the next period.
　　C. sum of the present values of the two possible values from the next period.
　　D. average of the future values of the two possible values from the next period.
　　Answer：B
　　The value at any given node in a binomial tree is the average present value of the cash flows at the two possible states immediately to the right of the given node, discounted at the 1-period rate at the node under examination.