1- A put option on a stock with a current price of $47 has an exercise price of $49. The price of the corresponding call option is $4.35. According to put-call parity, if the effective annual risk-free rate of interest is 5% and there are four months until expiration, what should be the value of the put?

2- You are attempting to value a call option with an exercise price of $95 and one year to expiration. The underlying stock pays no dividends, its current price is $95, and you believe it has a 50% chance of increasing to $120 and a 50% chance of decreasing to $70. The risk-free rate of interest is 8%. Based upon your assumptions, calculate your estimate of the the call option's value using the two-state stock price model.