stock pays a quarterly dividend of $0.53 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 $56.50 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 $56.50 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 $56.50 a share by the expiration date on the calls, the total profit is 9 (Round to the nearest cent.) The total holding period return is %. (Round to two decimal places.) b. What happens to Adam's profit (and return) if the price of the stock rises to more than $56.50 a share? (Select the best answer below.) c. Does this covered call position offer any protection (or cushion) against a drop in the price of the stock? Explain. (Select the best answer below.) D. The covered call position offers total protection against a drop in stock price. The capital loss on the stock will be fully protected