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.

This option strategy protects you from $\_\_\_.$

Question $32$ options:

material prices rising

material prices being volatile

material prices falling