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Fullstock Inc.s stock price S is $50. European Options on FullStock have a strike price K = $50, a maturity T = 180 days, risk-free

Fullstock Inc.s stock price S is $50. European Options on FullStock have a strike price K = $50, a maturity T = 180 days, risk-free interest rate r= 4% per year, and volatility = 30% per year. The company is not going to pay dividends.

a. Compute the price of a call option using the Black-Scholes-Merton model. (8 points)

b. Compute the price of a put option using put call parity.

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