Adam Smith just purchased shares of​ AT&E at ​, and he has decided to write covered calls against these stocks. ​ Accordingly, he sells ​AT&E calls at their current market price of . The calls have 3 months to expiration and carry a strike price of . The stock pays a quarterly dividend of 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 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 a​ share? c.  Does this covered call position offer any protection​ (or cushion) against a drop in the price of the​ stock? Explain.