## Answers

As per the put-call parity equation, P + S = C + (K/e^{r}^{t})

where C = price of call option,

P = price of put option,

S = current stock price

K = strike price of option

r = risk free rate

t = time to expiration in years

We plug in the values to find the price of the call option :

P + S = C + (K/e^{r}^{t})

P + 35 = 12.05 + (25 / e^{0.06*(6/12)})

P = 12.05 + (25 / e^{0.06*(6/12)}) - 35

P = $1.31

The price of put option is $1.31

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