Explain why the linear model can provide only approximate estimates of VaR for a portfolio containing options.

Question:

Explain why the linear model can provide only approximate estimates of VaR for a containing options.
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...