After conducting a rate-sensitive analysis, a bank finds itself with the following amounts of rate-sensitive assets and liabilities (RSAs and RSLs) and fixed-rate assets and liabilities (FRAs and FRLs). The rate of return and cost rates on the accounts are also given in the following table:

Assets	Amount (million $)	Liabilities & Equity	Amount (million $)
RSAs @ 4.25%	$ 322	RSLs @ 3.11%	$ 200
FRAs @ 5.15%	$ 700	FRLs @ 4.95%	$ 800
NEA	$ 120	Equity	$ 142
Total	$ 1,142	Total	$ 1,142

If we were to design a macrohedge, which of the following positions would help reduce the bank's interest rate risk?

1. I. Establishing a long position in bond futures contracts (correct lol)
2. II. Buying put options on bonds
3. III. Purchasing an interest rate cap