Rancor Inc. has sold a call option tied to the stock price of Jabba Corp. Rancor has also purchased shares of Jabba Corp.'s stock to protect them from losses on the option contract that would result from sharp increases in the stock price. This hedging strategy is generally referred to as: 

A. A straddle.

B. A covered call. 

C. A combination. 

D. A bull spread.

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