Suppose that the price of a stock currently is $$20.$ A call option writen on that stock with

an exercise price of $21$ and a maturity of $3$ months has a premium value in the market of $$1$

per share. Draw the profit$/$loss diagram for a trader who sells this call option

b$)$ Suppose that there is also a put written on the same stock with the same maturity and the same exercise price. Given that both options are European options; what must be the value of the put option per share according to Put$-$Call parity if the annual interest rate is $8\%($use simple rate in the solution$)$