The stocks of Finmark Plc are currently trading at 2.26 per share. The historic standard deviation of Finmarks returns is 50% per annum. Current risk free rate of return is 5% per annum with continuous compounding. Required:

i. What is the price of a call option on Finmarks stocks with a strike price of 2 and maturity in six months? Assume that these stocks generate a dividend yield of 2% per year with continuous compounding. ii. Find the price of an equivalent put option using put-call parity. iii. Discuss the impact on the prices of call and put options if Finmarks stocks generate no dividend yield (no need to calculate the option prices).