Solve the RED cells. The green is already correct. "0", "1", and "3" are not correct answers to any red cell. And generally, that bunch of asset values that are provided are not correct answers - the answers are not in these images.

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(1 pt) At timet0, an asset has value So 3 This problem approximates the price at t 0 of an American-style put option based on the asset, with strike K = 4 and expiration T-1 The time interval from t 0 to 1 is divided into M-3 subintervals of length The interest rate is r- 0.05 and the discount factor for each subinterval is e-At The volatility is ? 0.3 The asset is modeled by a binomial lattice of asset values based on So and factors 3 Let S:-S0 At each time level ti ???.-0, 1, 2, an asset value Sl will either increase by a factor of u to Sitl us.. or decrease by a factor of d dS Each such change is an increase or decrease with equal probability pI-p- The asset values are (1t t3 S3 1.79319 S 2.53553 S 3.58518 S 5.06939 (2)t t2 S3 2.12875 S? 3.01 S? 4.25609 (3) t-t1: S 2.5271 S1 3.57327 3" oSdS at the next time level 11+1