23. You have an exploration and production company that produces natural gas. You are concerned the price of natural gas might drop and cause your profits to decrease. Which of the following would be an appropriate way to hedge your risk? A. Buy a put option on natural gas B. Sell a futures contract on natural gas C. Buy a call option on natural gas D. Either A or B E. None of the above 24. Which of the following statements is/are true regarding the delta of a call option: A. delta of a call option is positive B. delta of a call option does not change with the price of the underlying asset C. delta of a call option is negative D. all of the above E. none of the above 25. What is the time value of an option? A. The amount of money the option holder would make if they exercised the option B. The Black-Scholes value C. Always equal to the intrinsic value D. The market value of the option minus the intrinsic value E. None of the above 23. You have an exploration and production company that produces natural gas. You are concerned the price of natural gas might drop and cause your profits to decrease. Which of the following would be an appropriate way to hedge your risk? A. Buy a put option on natural gas B. Sell a futures contract on natural gas C. Buy a call option on natural gas D. Either A or B E. None of the above 24. Which of the following statements is/are true regarding the delta of a call option: A. delta of a call option is positive B. delta of a call option does not change with the price of the underlying asset C. delta of a call option is negative D. all of the above E. none of the above 25. What is the time value of an option? A. The amount of money the option holder would make if they exercised the option B. The Black-Scholes value C. Always equal to the intrinsic value D. The market value of the option minus the intrinsic value E. None of the above