Suppose that in Problem 19.15 the price of silver at the close of trading yesterday was $8, its volatility was estimated as 1.5% per day, and its correlation with gold was estimated as 0.8. The price of silver at the close of trading today is unchanged at $8. Update the volatility of silver and the correlation between silver and gold using the two models in Problem 19.15. In practice, is the w parameter likely to be the same for gold and silver?

AppendixLO1