Which of the following statements are false?

I. Swaps are the type of derivatives that commercial banks use the most to hedge risk.

II. The net payoff of a call seller/ writer cannot be negative.

III. To hedge a fixed income security on the liability side, a financial institution can take a long position in a futures contract (on a closely matched fixed income security).

IV. The put buyer only pays the put premium if the put option expires out of the money.

Group of answer choices

II, III and IV only

II and IV only

II and III only

I, II and III only

I and II only