Q1)

If you can buy stock, calls or puts that have a strike price of $28, time to matrutity of one year and the current stock price is $27 show what is your rate of return on investment if you spend 1000 invested in all stock, calls, puts or t-bills if the risk free rate is 2%, if the final price ends up being $20, $25, $30, or $35.

The current price for a call with a strike of $28 is $2.20. The current price for a put is $2.65