Can someone help me answering this question? A stock price is currently $50. Over each of the next two 3-month periods it is expected to go up by 6% or down by 5%. The risk-free interest rate is 5% per annum. a) What is the value of a 6-month European call option with a strike price of $51? b) What is the value of a 6-month European put option with a strike price of $51? c) Verify that the European call and European put prices satisfy put-call parity.

Question 1: Option pricing A stock price is currently $50. Over each of the next two 3-month periods it is expected to go up by 6% or down by 5%. The risk-free interest rate is 5% per annum. a) What is the value of a 6-month European call option with a strike price of $51? b) What is the value of a 6-month European put option with a strike price of $51? c) Verify that the European call and European put prices satisfy put-call parity