Adam Smith just purchased 300 shares of AT&E at $53.98, and he has decided to write covered calls against these stocks. Accordingly, he selis 3 AT&E calls at their current market price of $5,08. The calls have 3 months to expiration and carry a strike price of $58.00. The stock pays a quarterly dividend of $0.53 a share (the next dividend to be paid in about a month)

What happens to​ Adam's profit​ (and return) if the price of the stock rises to more than $ 58.00 a​ share? ​
A. For any price above $ 58.00​, the loss on the call option will be offset exactly by the additional capital gains made on the long position in the​ stock, leaving the profit unchanged. The HPR also remains the same.
B. For any price above $ 58.00​, the loss on the call option will suppress the additional capital gains made on the long position in the​ stock, leaving zero profit. The HPR will also be zero.
C. For any price above $ 58.00​, the gain on the call option will be offset exactly by the capital loss made on the long position in the​ stock, leaving the profit unchanged. The HPR also remains the same.
D. For any price above $ 58.00​, the loss on the call option will exceed the additional capital gains made on the long position in the​ stock, leaving the profit unchanged. The HPR also remains the same.