1. (10 points) Ryan has been following the recent bankruptcy of the largest utility provider in the state of California, Pacific Gas & Electric (ticker: PCG). PCG's electrical power generating equipment is the prime suspect in the cause of the Northern California wildfire in November 2018 that wiped out the town of Paradise, California. Ryan decided to open a 100 share short stock position in Pacific Gas & Electric. When he opened his position, the bid price for PCG was $22.00 and the offer price was $23.50 When he closed his position a year later, the bid price for PCG was $17.90 and the offer price was $18.00 The commission rate is 2.5% The risk-free annual interest rate is 2.5% The annual short rebate rate is 1% What is Ryan's gain or loss