Question: David is interested in purchasing a European call option on Divine Vines, Inc., a non-dividend-paying common stock, with a strike price of $30 and three

David is interested in purchasing a European call option on Divine Vines, Inc., a non-dividend-paying common stock, with a strike price of $30 and three months until expiration. Divine’s stock is currently trading at $60 per share, and the annual variance of its continuously compounded returns is 0.36. Treasury bills that mature in three months yield a continuously compounded interest rate of 3 percent per annum
a. Use the Black-Scholes model to calculate the price of the call option that David is interested in buying
b. What does put-call parity imply about the price of a put with a strike price of $30 and three months until expiration?

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