Youre bullish on Suncor Energy Inc. (SU). The current price of Suncor Energy Inc is $20 (S0), and a call option expiring in one year on this stock with an exercise price of $20 (X) is selling for $2 (C) each. You have $1,000 to invest.

You invest all the $1,000 in Suncor Energy Inc. stock. What is the rate of return if the price of Suncor Energy increases to $23?

You invest all the $1,000 in Suncor Energy Inc. stock. What is the rate of return if the price of Suncor Energy decreases to $17?