A bank with short-term, floating-rate assets funded by long-term, fixed-rate liabilities could hedge this risk by:

I. Buying a T-bond futures contract.
II. Buying options on a T-bond futures contract.
III. Entering into a swap agreement to pay a fixed rate and receive a variable rate.
IV. Entering into a swap agreement to pay a variable rate and receive a fixed rate.

Multiple Choice:
- I and III only
- I, II, and IV only
- II and IV only
- III only
- IV only