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. What is the option price (f_u), 3-months from now (t=3-months)?

Group of answer choices

f_u 5

5 < f_u 7.5

7.5 < f_u 10.0

10.0 < f_u 12.5

f_u > 12.5