A financial institution with a negative duration gap ([Dᴀ-KʟD) <0). If it were to design a macrohedge,
which of the following positions would help to reduce the financial institution's interest rate risk?
I.Purchasing bond futures contracts
II.Buying put options on bonds
III.Setting up an interest rate swap in which the financial institution pays a fixed rate of
interest and receives a variable rate of interest.

1. I and II only
2. ll and Ill only
3. I only
4. ll only
5. lll only