A bank's rate$-$sensitive assets EXCEED its rate$-$sensitive liabilities by $$500,000.$ What can the bank do to hedge its interest rate risk exposure using interest rate swap?

Question $39$ options:

$1)$

Pay fixed rate on $$0\mathrm{.}5$m and receive floating

$2)$

Pay floating rate on $$0\mathrm{.}5$m and receive fixed

$3)$

Pay floating rate on $$0\mathrm{.}5$m and receive fixed equal to the change in interest income

$4)$

Pay fixed rate on $$0\mathrm{.}5$m and receive floating equal to the change in interest income

$5)$

None of the above