You can have that book. I ___ with it. a)finished b)have

You can have that book. I have finished with it.

Have finished is in Present Perfect. We use present Perfect for a past action which result connects with present. We use Present Perfect here, because I have read that book, I have finished it, I know what the book is about, and I can give it to you. Present Perfect is formed with the help of the auxiliary verb to have and the third form of verb.

We use has for the third person singular. He has finished with it.

Negative have / has + not + the third form of the verb.

Interrogative have / has + subject + the third form of the verb.