An investment bank uses the RiskMetrics model with lambda of $0\mathrm{.}9$ to model the daily volatility of a security. The current estimate of the daily volatility is $1\mathrm{.}5\%.$ The closing price of the security is USD $20$ yesterday and USD $18$ today. Using log returns, what is the updated estimate of the volatility?

A$)5\mathrm{.}44\%$

B$)3\mathrm{.}62\%$

C$)2\mathrm{.}96\%$

D$)1\mathrm{.}31\%$

please show work and explain