Question 8 (15 points) Company A bought 10,000 contracts on 2 year Brent future with price today = 30 from company B. Volatility of the future = 50percent. Hazard rate for A and B, 7 percent and 10 percent respectively. Two years interest rate years = 2 percent. Recovery rates for A= 50 percent for B = 40 percent B posted collateral of 10,000 and A posted collateral of 6,000. Calculate CVA and DVA for company A. Question 8 (15 points) Company A bought 10,000 contracts on 2 year Brent future with price today = 30 from company B. Volatility of the future = 50percent. Hazard rate for A and B, 7 percent and 10 percent respectively. Two years interest rate years = 2 percent. Recovery rates for A= 50 percent for B = 40 percent B posted collateral of 10,000 and A posted collateral of 6,000. Calculate CVA and DVA for company A