Question: A partial two-stage binomial tree is shown below for an American call option with a strike price of $155, spot price of $154, and volatility

A partial two-stage binomial tree is shown below for an American call option with a strike price of $155, spot price of $154, and volatility () of 20%. The risk-free rate is 1% per annum compounded continuously.

If the value of fu in the tree above turns out to be 10 , what would be the value (f) of this option today?

Group of answer choices

f 5

5 < f 15

15 < f 30

30 < f 45

f > 45

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