Penny is a senior hedge fund trader at Nickles and Dimes Fund in Vermont. Penny is confident about her forecast for the US economy in 2022: (a) growth will accelerate to 5.0%; (b) inflation will continue to rise significantly; (c) the Fed will have to raise Fed Funds rate five times for a total of 1.25%; and (d) Russia and Saudi Arabia will squeeze the oil market, raising WTI prices by 25%. What would be the only INCORRECT trade for Penny to implement in 2022?

a. Go long the US Treasury bonds, particularly the 2-year, 3-year and 5-year bonds b. Go long a basket of cyclical stocks c. Go long stocks with a high inflation beta and short stocks with a high interest rate beta d. Buy out of the money calls on the S&P ETF SPY and write out of the money puts on oil