Problem 4. Use the variance-covariance method to estimate the daily V3R.0_g5 and E8095 for the portfolio with the following value at the period n = 0, 1 Vn = 033(tn,S,1L) + exp((1 tn)r) 5': Suppose that the exercise price of the call Option is K = 100, the current value of the stock 5'1 is 5'3 = 110, the time to maturity is one year (250 days), the volatility is a = 0.2 and the interest rate is r = 0.02. The current value of the stock 32 is 83 = 80 and the daily log-return .1 1 1. X of (81,82) is assumed to follow N2( [ 32 ] , [1 5 35 ])