You are a bank and a client has just borrowed $10m for two years starting in three months at a fixed rate of 3.00% ACT/360. You are trying to decide possible hedging tools. Which of the following positions could be used to hedge the position?

Group of answer choices

Short Eurodollar futures

Long Eurodollar futures

Short 2-year Treasury note futures

Long 2-year Treasury note futures

Short 3-year Treasury note futures

Long 3-year Treasury note futures

Short 10-year Treasury note futures

Long 10-year Treasury note futures

Pay fixed/Receive Floating on a 2-year interest rate swap starting in 3 months.

Pay floating/Receive fixed on a 2-year interest rate swap starting in 3 months.

An FRA to lend $10m starting in three months.

An FRA to borrow $10m starting in three months.