1. (Pricing a call and put) A stock traded for $25 today will, in 1 year, be worth either $35 or $20. If the interest rate is 3%: a. What is the value today of a 1-year European call option on the stock with exercise price $30? b. Calculate the value today of a 1-year European put option on the stock with exercise price $30. c. Show that put-call parity holds: That is parts a and b, show the following: X = Stock price today+ Put price Call price + 1+r