Consider a European call option on a non-dividend-paying stock where the stock price is $40, the strike price is $40, the risk-free rate is 4% per annum, the volatility is 30% per annum, and the time to maturity is six months. Use a two-period binomial option pricing model.

1. What is the price of the option if it were a European put?
2. Verify that put-call parity holds.