Question 2 On April 7th, 2018 one share in RYOHIN KEIKAKU CO., LTD (the retailer of MUJI) was worth 1,828 JPY. The annual variance of RYOHIN's stock returns is 9%. The risk-free rate is 2% per year. (i) Use the Black-Scholes formula to value one European call option in RYOHIN, which expires in 6 months' time, and has an exercise price equal to 1,520 JPY. Show all relevant calculations. Without doing any calculations, describe in one sentence how an increase in the annual standard deviation of the stock returns of RYOHIN would influence the price of the call option you have calculated in part (i). (iii) Using the put-call parity and your answer in part (i) calculate the price of a European put option on RYOHIN, which has the same strike price and expiration date as the call option in (i)