Question: please help with how I can get answer for u and what formula that is needed to be used I will upvote if the answer

please help with how I can get answer for u and what formula that is needed to be used I will upvote if the answer make sense. Thanks a lot.

QUESTION 1 [7 MARKS] A 9-month American option allows an Italian investor to purchase 1 million USD at the rate of 0.85 euros per USD. The current spot FX rate is 0.90 euros/US, the FX rate volatility is 15% p.a., the risk-free rate in the US is 1% p.a. and in Europe it is 2.5% p.a. a) Use a three-period binomial model to assess the total premium paid by the investor (round to 4 decimal places) SO 0.9 rf 0.01 sigma 0.15 u 1.0779 d 0.9277 rf 0.025 Dt 0.25 K 0.85 0.5064 please help with how to get the number for u and what is the formula that used to get that

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