You may, if you want, write a formal book report. You can write a story, or create a dialogue or craft a play. You can blend the material with things that interest you or which form part of your own lives. In short, I would like you to stretch out and make the material relevant to yourselves and to your lives. However, no matter what format you choose, you must provide good analysis of the material.
Good papers are papers that emphasize analysis over narration.
In all cases, you must evaluate and analyze the material found in the book and you must convince the instructor that you have read it. If you believe that your idea is a bit strange or unusual, be sure to talk to me about it before you hand something in. However, also be sure to put your opinions into the paper and use the material to back them up. Advocate something if you think the material supports your conclusion. If you strongly disagree with something, say so.