Step 1: Differentiating the function.
We are given \( y = \tan^{-1}(\sec x + \tan x) \). To find \( \frac{dy}{dx} \), we use the chain rule. The derivative of \( \tan^{-1}(u) \) is \( \frac{1}{1 + u^2} \), where \( u = \sec x + \tan x \).
Step 2: Applying the chain rule.
We first differentiate \( u = \sec x + \tan x \). The derivative of \( \sec x \) is \( \sec x \tan x \), and the derivative of \( \tan x \) is \( \sec^2 x \). So,
\[
\frac{du}{dx} = \sec x \tan x + \sec^2 x
\]
Now, applying the chain rule:
\[
\frac{dy}{dx} = \frac{1}{1 + (\sec x + \tan x)^2} \cdot (\sec x \tan x + \sec^2 x)
\]
After simplifying, we find that the correct answer is \( \frac{1}{2} \), corresponding to option (A).
Step 3: Conclusion.
Thus, the correct value of \( \frac{dy}{dx} \) is \( \frac{1}{2} \), making option (A) the correct answer.