When investors are unsure of market movements, they want to protect their investments but still look for higher returns. An investor has bought YUM Brands at $$20$ per share. It has currently appreciated to $$28$ per share, but could drop in value in the current market. He decides on the following strategy: An April $$25$ put on YUM is trading at $$1\mathrm{.}10.$ An April $$32$ call is trading at $$1\mathrm{.}00$ so he buys one April put and sells one April call. How would we characterize this strategy?

Question $13$ options:

covered call

put overwrite

collar or hedge wrapper

protective put