As per Basel 2.5, the market risk is given by:

$$\text{MR}_{2.5} = \max(\text{VaR}_{t-1}, m_r \text{VaR}_{\text{avg}}) + \max(\text{SVaR}_{t-1}, m_s \text{SVaR}_{\text{avg}})$$

Where:

• $\text{VaR}_{t-1}$ is the traditional 10-day, 99% VaR from the previous day.
• $\text{VaR}_{\text{avg}}$ is the 99% average VaR of the most recent days.
• $m_r$ is the multiplier on the average VaR.
• $\text{SVaR}_{t-1}$ is the stressed 10-day, 99% VaR.
• $\text{SVaR}_{\text{avg}}$ is the 99% average stressed VaR.
• $m_s$ is the multiplier on the average stressed VaR.

Plugging in the given values:

\text{MR}_{2.5} = \max(\`$800`, 3.0 \times \`$360`) + \max(\`$950`, 3.5 \times \`$370`) $$\text{MR}_{2.5} = \max(800, 1080) + \max(950, 1295)$$ $$\text{MR}_{2.5} = 1080 + 1295 = 2375$$

Therefore, the estimated market risk capital charge is $2,375.