Problem 1

Day

0
1
2
3
4
5
6
7
8
9
10

Closing Futures priceRelative Price

15
14 3/4
14 1/2
14 7/8
15
15 1/8
15 3/16
15 5/16
15 1/2
15 3/4
16

Daily Return Square of Daily Return

0.983333333 -0.01681
0.983050847 -0.01709
1.025862069 0.02553
1.008403361 0.00837
1.008333333
0.0083
1.004132231 0.00412
1.008230453
0.0082
1.012244898 0.01217
1.016129032
0.016
1.015873016 0.01575

0.000282479
0.00029222
0.00065195
7.00276E-05
6.88701E-05
1.7005E-05
6.7187E-05
0.000148122
0.000256011
0.000248011

0.06454

0.002101882

Volatility calculation

Formula for Standard Deviation

1/9*0.0021-0.06454^2/(10*(9))

Square root

0.000187051
0.013676658

Assuming that there are 252 trading days per year,

0.013676658/(1/@sqrt(252))
0.217110215
Volatility is 21.7 percent

Problem 2

week Stock Price

1
30 1/4
2
32
3
31 1/8
4
30 1/8
5
30 1/4
6
30 3/8
7
30 5/8
8
33
9
32 7/8
10
33
11
33 1/2
12
33 1/2
13
33 3/4
14
33 1/2
15
33 1/4

Relative price

Weekly Return
1.05785124
0.97265625
0.967871486
1.004149378
1.004132231
1.008230453
1.07755102
0.996212121
1.003802281
1.015151515
1
1.007462687
0.992592593
0.992537313

0.056239718
-0.02772455
-0.03265596
0.004140793
0.004123717
0.008196767
0.074690893
-0.00379507
0.003795071
0.015037877
0
0.007434978
-0.00743498
-0.00749067

0.003162906
0.000768651
0.001066412
1.71462E-05
1.7005E-05
6.7187E-05
0.005578729
1.44026E-05
1.44026E-05
0.000226138
0
5.52789E-05
5.52789E-05
5.61102E-05

0.094558583

0.011099647

1/13*F53-(E53)^2/(14*13)

0.000804691

Square Root

0.028367073

The volatility per annum is therefore 0.028367073*@sqrt(52)

0.204557872
The estimated volatility per annum is 20.46%

f Daily Return
-0.02326 0.000541
-0.02355 0.000555
0.019079 0.000364
0.001914 3.66E-06
0.001845

3.4E-06

-0.00233 5.43E-06
0.001743 3.04E-06
0.005717 3.27E-05
0.009546 9.11E-05
0.009295 8.64E-05
0.006454 0.001685
0.000187

0.013684