Dan owns 500 shares of Rocket Corporation common stock. The stock was acquired two years ago for \($30\) per share. On October 2, 2023, Dan writes five calls on the stock, which represent options to buy the 500 shares of Rocket at \($75\) per share. For each call, Dan receives \($210.\) The calls expire on June 22, 2024. Consider the following transactions and describe the tax treatment for Dan:

a. The five calls are exercised on December 4, 2023.

b. The calls are not exercised and allowed to expire.