A stock price is $$150$ Over each of the next two sixth$-$month periods, the stock will go up or down by $10\%.$ The risk free rate is $5\%$ pa$.$ What is the value of a one year European call with strike $$130?$ Construct the replicating portfolio, what is the value of a one year European put with strike $$130.$ Verify that put$-$call parity is satisfied