You are the manager of the Complex Investment Fund. On 12 July, you receive notice that the fund will be sold on 30 August. The fund comprises a diversified portfolio of listed Australian shares. It is currently valued at $9 million. On 12 July, the S&P/ASX Index was 6350 and you hedged this risk by selling 57 September SPI 200 futures at a contract price of 6325. On 28 August, the S&P/ASX Index was 5335 and the contract price of the September SPI 200 futures contract was 5325. The value of the portfolio had fallen to $8.6 million. Your gain (or loss) on the hedge is:

Group of answer choices

$125,000.

$1,025,000.

-$200,000.

$350,000.

None of the above answers is correct.