You have $3,000 to invest and can either buy shares of stock or call options on the same stock. The current stock price is $80.08 and the price of a call option with a strike price of $80 is $1.54.

Assume that the stock price is $82.22 after 2 months. The stock did not pay any dividends.

What is the annualized return if you buy only shares?

What is the annualized return if you buy only options?

What is the annualized return if you buy only shares and the stock price ends up at $78.15?

What is the annualized return if you buy only options and the stock price ends up at $78.15?