similar questions but not the same

You are the VP of Finance for the wine manufacturer SIPP. Your company wants to reduce the volatility of its cash flows by making its cash flows less sensitive to changes in grape prices. It will do so by buying a call option on a grape ETF with a strike price 550 and buying a put option on a grapes ETF with a strike price of $50. Both options are American and expire in one year. Suppose that tomorrow the grape ETF trades at S60 per share. What is the payoff of this option strategy? Cannot be calculated without tho option promiums. 10 QUESTION 22 You are the VP of Finance for the wine manufacturer SIPP. Your company wants to reduce the volatility of its cash flows by making its cash flows less sensitive to changes in grape prices. It will do so by buying a call option on a grape ETF with a strike price $50 and buying a put option on a grapes ETF with a strike price of $50. Both options are American and expire in one year. Suppose that you sell both options and decide to purchase a put with a strike price of $40 and a call with a strike price of $60. All the options are American with the same maturity date as the original portfolio. What is the expected cost of this option strategy? O Higher Equal O Lower