Which of the following statements are true?

I. Writing options is not appropriate for hedging purposes.

II. A financial institution can hedge its foreign exchange risk using on-balance-sheet hedging but not off-balance-sheet hedging.

III. Out-of-the-money and at-the-money options have both positive intrinsic value and positive time value.

IV. In-the-money options have both positive intrinsic value and positive time value.

I, II, and III only

II, III and IV only

II and III only

I and IV only

I and III only