RDP 8902: Option Prices and Implied Volatilities: An Empirical Analysis Equation (3)

( Tt ) σ 2 ( t,T )= var t ( log f T ) MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaWaaeWaaeaaca qGubGaeyOeI0IaaeiDaaGaayjkaiaawMcaaiabeo8aZnaaCaaaleqa baGaaGOmaaaakmaabmaabaGaaeiDaiaacYcacaqGubaacaGLOaGaay zkaaGaeyypa0JaciODaiaacggacaGGYbWaaSbaaSqaaiaabshaaeqa aOWaaeWaaeaaciGGSbGaai4BaiaacEgacaaMc8UaaeOzamaaBaaale aacaqGubaabeaaaOGaayjkaiaawMcaaaaa@4DDB@