A stock has a current price of $60. Each month the price rises by 10% or falls

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Question:

A stock has a current price of $60. Each month the price rises by 10% or falls by 5%, with equal probability. The monthly risk-free rate is 1%.
a) Find the current price of a European put option on the stock with two months until expiration and exercise price of $65.
b) Consider an option trader who has sold a call option on the stock with exercise price of $58 and two months until expiration. How many shares of stock must he hold at time zero to hedge his option position?
c) Describe the parameters of the Black- Scholes option pricing model and whether marginal changes in each parameter affect the price of a call option positively or negatively.