Suppose that the price of an asset at close of trading yesterday was $300 and its volatility was estimated as 1.3% per day. The price at the close of trading today is $298. Update the volatility estimate using the GARCH(1,1) model with = 0.000002, = 0.06, and = 0.92.

Select one:

a. 0.012655 (or 1.2655%)

b. 0.014199 (or 1.4199%)

c. 0.012753 (or 1.2753%)

d. 0.020680 (or 2.0680%)