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

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 (o) of 20%. The risk-free rate is 1% per annum compounded continuously. What is the option price (fu). 3-months from now (t-3-months)? TEQ T3mg Tu6mo Sw-188.10 1-33,10 5-170.20 p0.4439 So 154 1 $154.00 1680 12-01-05561 5g 139.34 190 11- Sw126.08 O 1,55 O5st, s 7.5 0 7.5 12.5

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