Suppose that the price of gold at close of trading yesterday was $300 and its volatility 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 w = 0.000002, a = 0.04, and 8 = 0.94 AppendixLO1