Question

Betty and Bob observe the following daily prices over a 5 day time span. Assume there...

Betty and Bob observe the following daily prices over a 5 day time span. Assume there are 256 trading days in a year.

Day

Price

  0

50.0000

  1

74.5912

  2

55.2585

  3

91.1059

  4

74.5912  

a. Find the volatility per day. and b. Find the volatility per annum.

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