Grizzly Bear Beer Company$$s stock is currently trading for $$69.$ The stock has a volatility of $35\%$

per annum. The risk$-$free interest rate is $5\%$ per annum. The stock currently does not make any

dividend payments.

A$.$ Using a two$-$step tree, calculate the price of a $6-$month European call with a strike price of

$$70.$

B$.$ Using a two$-$step tree, calculate the price of a $6-$month European put with a strike price of

$$70.$

C$.$ Use the call and put prices calculated from parts $($A$)$ and $($B$)$ to check if put$-$call parity

holds.