Question 3. (4 marks) Suppose that the price of gold at close of trading yesterday was $1200 and its volatility was estimated as 1.5% per day. The price at the close of trading today is $1208. A. Update the volatility estimate using the EWMA model with 0.95. (1 mark) B. Suppose the parameters of the corresponding GARCH(1,1) model are a: 0.000002 a 0.05, and B-0.90 i) What is the long-run average volatility? (1 mark) ii Update the volatility estimate using the GARCH(1.1) model. (1 mark) i What is the expected volatility in 25 days? (1 mark)