You have borrowed at 3-month LIBOR+50. LIBOR for the loan will be re-fixed in exactly one month. The market is quoting:
1x3 USD FRA 0.42-45%
1x4 USD FRA 0.54-58%
1x5 USD FRA 0.57-62%
To hedge the next LIBOR fixing, you should:
Sell a 1x3 FRA at 0.42%
Buy a 1x3 FRA at 0.45%
Buy a 1x4 FRA at 0.58%
Sell a 1x4 FRA at 0.54%
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