The investment manager is testing the Strangle strategy. In a Strangle strategy, an investor purchases a European call and a European put option on the stock of a specific firm. These options have the same expiration date but different strike prices. This strategy is used when the investor believes that the stock price will experience significant movement but is unsure of the direction. The call option allows the investor to profit if the stock price rises above the strike price, while the put option provides profit if the stock price falls below the strike price. The maximum loss for the investor is the total premiums paid for the options, which occurs if the stock price at expiration is between the strike prices of the call and put options. The potential profit is unlimited on the upside and significant on the downside.

• Choice A is incorrect. A calendar spread strategy involves buying and selling the same type of options (calls or puts) on the same underlying asset with the same strike price but different expiration dates. In this case, both options are for 9 months and have different strike prices, so it does not match the calendar spread definition.
• Choice B is incorrect. A straddle strategy involves buying a call and put option with the same strike price and expiration date. Here, the strike prices are different ($37 and $32), so it is not a straddle.
• Choice C is incorrect. A strip strategy involves buying two put options and one call option with the same strike price and expiration date. In this scenario, the manager bought one call and one put with different strike prices, which does not match a strip.