10.12 The most recent estimate of the daily volatility of the dollar–sterling exchange rate is 0.6% and the exchange rate at 4:00 P.M yesterday was 1.5000. The parameter 
in the EWMA model is
0.9. Suppose that the exchange rate at 4:00 P.M today proves to be 1.4950. How would the estimate of the daily volatility be updated?
10.13 
A company uses the GARCH(1,1) model for updating volatility. The three parameters are , and 
. Describe the impact of making a small increase in each of the parameters while keeping
the others fixed.
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