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Question 3 Suppose that observations on a stock price (in $) at the end of each of 15 consec- utive trading days are as follows:
Question 3 Suppose that observations on a stock price (in $) at the end of each of 15 consec- utive trading days are as follows: 30.2, 32.0, 31.1, 30.1, 30.2, 30.3, 30.6, 30.9, 30.5, 31.1, 31.3, 30.8, 30.3, 29.9, 29.8. Estimate the latest daily volatility using both exact and approximate approaches? Is the latter close to the former? Question 3 Suppose that observations on a stock price (in $) at the end of each of 15 consec- utive trading days are as follows: 30.2, 32.0, 31.1, 30.1, 30.2, 30.3, 30.6, 30.9, 30.5, 31.1, 31.3, 30.8, 30.3, 29.9, 29.8. Estimate the latest daily volatility using both exact and approximate approaches? Is the latter close to the former
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