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# Hull EOC Q&A Question 19

#### Nicole Seaman

Staff member
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Posted by @akrushn2 in another thread

Can someone please confirm q19 and whether the answer is correct? I get 1.614% as the answer on my end. the calculations are sqrt( 0.0001 + 0.04*(298/300 -1)^2 + 0.94*0.013^2) = 1.614%.

Question 10.19

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 EWMA model with λ = 0.94
• The GARCH(1,1) model with ω = 0.000002, α = 0.04,and β = 0.94.