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(1) Suppose that the price of a stock at close of trading yesterday was $200 and its volatility was estimated as 2% per day. The

(1) Suppose that the price of a stock at close of trading yesterday was $200 and its volatility was estimated as 2% per day. The price at the close of trading today is $196. Update the volatility estimate using, (a) The EWMA model with l = 0.94 (b) The GARCH(1,1) model with w = 0.000002 , a = 0.04 , and b = 0.94

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