You currently have a position on a covered call. A covered call is a combination of a long stock and a short call on the same stock. You purchased the stock at the price of $50 and short the call at the premium of $3. The call option has an exercise price of $60.If the stock price increases to $57, what is your net income?

Select one:

a. $10

b. $7

c. $9

d. $3

e. $2