Consider the following covered call write: Buy 100 DEF at 42 and Sell 1 DEF Jan 45 call at 1.5. At what price for DEF will the covered call writer and the buy-and-hold stockholder have the same gain at expiration in June (excluding transaction costs)? Who would have a greater return if the stock were 43 at expiration? What is the call writer's return on the initial stock investment if assigned? At what price on the stock does the call writer get the same absolute return as if he had sold the June 40 call for 3.2 instead?

QRS stock is trading at $23 in January, and the following puts are available: March 20 put at .60 March 22.5 put at 1.30 March 25 put at 3.20

Which put write offers the greatest potential return on the investment required to purchase the stock? What is that return?