S=300 X=310 T=2 r=5% U=1.08 d=0.91

1. Explain how increasing the number of periods makes the model more realistic?
2. Explain how the payoffs are calculated at maturity and how the premium at t=0 is obtained? (no need to go into details price by price, just give the overall idea)
3. A Conclusion where you summarize your point of view from how realistic is the binomial and whether it can be used to value options.