You are the financial manager of a construction company that wants to reduce the volatility of its cash flows by making its cash flows less sensitive to changes in the price of concrete. It will do so by buying a call option on the Invesco Materials ETF with a strike price of $$65$ and buying a put option on the ETF with a strike price of $$55.$ Both options are European and expire in $3$ months.

Suppose we replace all the options with identical European options that expire in $1$ year. We would expect that the cost of this new option portfolio to be $\_\_\_$

a$)$ higher

b$)$ lower

c$)$ the same

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