An investor holds a portfolio with a current value of $1,000,000 and a beta of 0.50. They decide to hedge systematic risk over the next year using futures contracts on the S&P 500 index. The current level of the index is 2,000 and the futures price is 2,060. Each futures contract is for delivery of $250 times the index. The investor goes short 1 contract to implement the hedge.

If the futures price increases to 2,266 in one year and the value of the investor's portfolio increases to $1,065,000, what is the total gain or loss for the investor?

Group of answer choices

A loss of $116,500

A loss of $13,500

A gain of $13,500

A gain of $116,500