$1.$Use the binomial option pricing model with monthly intervals and the put call parity relationship to find the call and put prices of non$-$dividend paying European stock options with a maturity of $2$ months. The current market price of the stock is $40$ dollar and the price has an equal likellhood of going up or coming down. The exercise price of the stock option is $50$ dollar.Analysts have ascertained the amount of upward stock price movement to

be $20\%$ and the amount of downward movement to be $30\%.$ The prevailing risk$-$free interest raleis $12\%$