A stock price is currently $$58.$ Over each of the next two three$-$month periods it is expected to go up byFor the situation considered in Question One, what is the value of a six$-$month European put option with

a strike price of $$60?$ Verify that the European call and European put prices satisfy put$-$call parity. If the

put option were American, would it ever be optimal to exercise it early at any of the nodes on the tree?

$7\%$ or down by $5\%.$ The risk$-$free interest rate is $6\%$ per annum with continuous compounding. What is the

value of a six$-$month European call option with a strike price of $$60?$