Binomial Stock Options Pricing: Call Options

[quiteawesome]

This seems a bit peculiar to me so would like to ask:
GIven a 2 period binomial tree for stocks, why is it that call option are only considered at the last nodes and not the interemediate nodes?
i.e. the call options are only considered at Node UU, Node UL and Node LL. The call options are not considered for Node U and Node L where their values are just the backward induction values but the values are not compared against the call option.
This method appears to be different from the binomial model for bonds which considers the backward inducted value against the call option at the intermediate nodes?

 

[SorcererMikey]

This would be the case for European call options only expiring at T2. American options could be exerciseable in the interim. Really depends on the type of option you are dealing with.

 

[quiteawesome]

I see yes it seems like it is just that the example I’m looking at is for a European that expires at the end of 2 years.
Just to confirm if it were an American Binomial stock option then the method would be similar to that for a American binomial bond option? ie consider call option at the intermediate nodes?

 

[S2000magician]

Yup.