Adam Smith just purchased 600 shares of AT&E at $53.77, and he has decided to write covered calls against these stocks. Accordingly, he sells 6 AT&E calls at their current market price of $4.94. The calls have 3 months to expiration and carry a strike price of $56.00. The stock pays a quarterly dividend of $0.51 a share (the next dividend to be paid in about a month). a. Determine the total profit and holding period return Adam will generate if the stock rises to $56.00 a share by the expiration date on the calls. b. What happens to Adam's profit (and return) if the price of the stock rises to more than $56.00 a share? c. Does this covered call position offer any protection (or cushion) against a drop in the price of the stock? Explain. a. If the stock rises to $56.00 a share by the expiration date on the calls, the total profit is $ (Round to the nearest cent.)