3. In Merton's (1974) model, the Black-Scholes framework is applied to valuing a put option on the borrower's a. Debt b. Equity c. Assets 4- The current value ofmy portfolio is 100. The worst-case return at the 99% confidence level is-20%. You have sufficient information to find Value at Risk. (True False) 5. When calculating Value at Risk of an option using the historical simulation approach, you need to simulate the follwing risk factors, EXCEPT a. Time to expiration b. Volatlity of the underlying c. Price of the underlying d. Interest rate