Buy call options on the bonds

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A bond portfolio manager has a $25 million market value bond portfolio with a six-year duration. The manager believes interest rates may increase 50 basis points. Which of the following could be used to help limit his risk? I. Sell the bonds forward. II. Buy bond futures contracts. III. Buy call options on the bonds. IV. Buy put options on the bonds.

Reference no: EM131508737

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