16.24. Suppose that in Problem 16.23 the price of silver at the close of trading yesterday was...
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16.24. Suppose that in Problem 16.23 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 EWMA model with = 0.94.
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