Assume that the current stock price is $30 and the exercise price of a call option on the stock is $30. The stock price will either be $20 or $40 in 1 year. The annual risk-free rate of interest is 10%.

1. Use the binomial option pricing model to determine the value of the call.
2. Use the put-call parity relationship to find the value of the corresponding put.

Show work please!