Q1)Suppose that for P-Stock, a hypothetical company, current stock price is $42, the strike price is $40, the risk-free interest rate is 8% per annum, the price of a 6-month European call option is $2, and price of a three-month European put option is $2.2. Does put-call parity hold? What happens if put-call parity holds or does not hold?

Q2)Suppose that todays price of ABC stock is $100 and it is known that price can move up by 15% or can move down by 10% in 3-months. A riskless portfolio is comprising of delta stocks of ABC and a 3-months PUT option on ABC stock with a strike price of $105. If the 3-months risk-free rate is 10%, Complete the table below: Your answer shouldnt be more than two decimal places.

Nodes	A	B	C
Stock price
Option Price
Delta