Suppose you estimate a GARCH model (with p = q = 1) of monthly volatility in the

Question:

Suppose you estimate a GARCH model (with p = q = 1) of monthly volatility in the value of the dollar and arrive at the following estimates: t2 = 0.0052 + (0.30)t-12 + (0.40)st-12, where the conditional variance (t-12) and the square of the percentage change in the spot (st-12) are from the previous period. If t-1 = 0.04 and st-1 = 0.12, what is the GARCH estimate of conditional volatility?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...