Suppose that the current price of gold at close of trading yesterday was $300 and its volatility

Question:

/ was estimated as 1.3% per day. The price at the close of trading today is $298. Update the volatility estimate using

a. The EWMA model with X = 0.94

b. The GARCH(1,1) model with co = 0.000002, a = 0.04, and fi = 0.94

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