ABC International has borrowed $$4,000,000$ at SOFR plus a lending margin of $0\mathrm{.}65$ percent per annum on a three$-$month rollover basis from Barclays in London. Three month SOFR is currently $5\mathrm{.}5$ percent, but ABC is worried about an increase in three$-$month SOFR $3$ months from now. What could they do to hedge?

Multiple Choice

Buy a $39$ FRA in the amount of $$4$ million.

Buy a $33$ FRA in the amount of $$4$ million.

Buy a $36$ FRA in the amount of $$4$ million.

Sell a $36$ FRA in the amount of $$4$ million.