What is a potential benefit of using futures contracts to synthetically alter the duration of a portfolio relative to other options? 1. The futures market is illiquid II. Futures contracts typically require less capital than other options III. Consistent with the preferred habitat theory of the yield curve, a manager might wish to keep the bonds in his portfolio rather than selling them to change its duration IV. The manager might have significant capital gains embedded in his bond portfolio, which would make him resistant to selling them to alter the portfolio's duration O I. II and III only O III and IV only O I. II. III, and IV O II, III, and IV only