Consider an option on a non-dividend-paying stock when the stock price is $30, the exercise price is $29, the continuously compounded risk-free interest rate is 5% per annum, the volatility is 25% per annum, and the time to maturity is four months. Use the Black-Scholes-Merton formula.

1. What is the price of the option if it is a European call?

2. What is the price of the option if it is an American call?

3. What is the price of the option if it is a European put?

4. Verify that putcall parity holds.