A trading desk is holding a portfolio of various options on 2 different underlying assets

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A trading desk is holding a portfolio of various options on 2 different underlying assets. As the risk manager, you want to report a 10-day 99% Value-at-Risk (VaR) for the portfolio.

1. Describe how you would compute the VaR under (i) the historical simulation approach, (ii) the linear model and (iii) Monte Carlo simulation.

1. Which one is your preferred method? Explain.