Consider Apple Inc. as the underlying asset, use its daily adjusted closing prices from August 12, 2019 to August 11, 2020 as historical data. 1. Estimate the daily standard deviation of the returns of this stock. 2. Deduce the yearly standard deviation. Consider the yearly standard deviation as the volatility of the stock and use the rate r = 0.0125 as annual risk-free rate. Assume you want to build a portfolio of options containing one call option with strike K1 = 420, and one put option with strike K2 = 460. Let C1(t, x) denotes the call option pricing function. Let P2(t, x) denotes the put option pricing function. Let the maturity T = 12 months. Using the adjusted closing price of August 11, 2020 as the initial stock price. 3. Compute the option prices C1, P2 on that date.