Correct Answer: C

The covered call position is a combination of two positions - long underlying and short call option. We can calculate the separate profit for each position and then add those up to get the profit of the covered call position. Profit in the long underlying position = 32.00 - 30.50 = $1.50. The profit in the short call position = $1.30 (because the option expired worthless at the expiry). Therefore, total profit = 1.50 + 1.30 = $2.80