The parameters of a GARCH(1,1) model are estimated as w = 0.000003, a = 0.12 and p = 0.83. (a) What is the long-run average volatility? (b) What is equation describing the way that the variance rate reverts to its long-run average? (C) If the current volatility is 20% per annum, calculate the expected daily volatility in 20 days. (d) Suppose the strike value of a variance swap maturing in 20 days is 0.02, and the principal is 1,000,000. Using your answer in (c), calculate the expected payoff of the long position of the variance swap