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A typical practice in finance is to estimate an option pricing model from market prices of op- tions that are traded frequently in other words, liquid options). The calibrated model can be used to hedge liquid options or price and hedge other (illiquid) exotic options on the same underlying. In this project, we will consider the calibration of a local volatility function (LVF) model in practice. The LVF model assumes the stock price as dS =s. Sdt + (S, t) SdWt, where o(S,t) max(0.0, 21 +228 +2392). The European call option value is then the solution of the PDE VA - r SVs +rV= 0, (1) 2 where T=T-t is the time to maturity. = 02(S,T) g2V5s 1. (10 points) Write the initial condition and boundary conditions for the above PDE