Adam an currently owns 100 shares of Lilly Company's stock, and he wants to write covered calls. If she writes one contract on Lilly for a $3 premium with an exercise price of $50, determine his portfolio's overall profit or loss under the following conditions when the option matures. Ignore transaction costs and taxes.

(a) The price of the stock falls from its current price of $51 down to $50

(b) The price of the stock rises from its current price of $51 to $60