Donna Donie, an option analyst at UMB Students Managed Fund, believes that the market will be volatile in the near future, but Donie does not feel particularly strongly about the direction of the movement. With this expectation, Donie decides to buy both a call and a put with the same exercise price and the same expiration on the the TRT stock trading at $$28.$ Donie buys one call option and one put option on TRT stock with the following exercise price and the premiums.

TRT Materials

Option Pricing Data $($U$.$S$.$$$)$

What is the name of the equity option strategy Donie has taken for the position?

Characteristic

Call Option

Put Option

Premium

$$4$

$$1$

Strike Price

$$25$

$$25$

Time to

Expiration

$90$ days from now

$90$ days from now

A$.$ Bull spread strategy

B$.$ Straddle strategy

C$.$ Strangle strategy

D$.$ Protective put strategy