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

ε t+i =log f t+i log f t+i1 . MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaeqyTdu2aaS baaSqaaiaabshacaqGRaGaaeyAaaqabaGccqGH9aqpciGGSbGaai4B aiaacEgacaaMc8UaaeOzamaaBaaaleaacaqG0bGaey4kaSIaaeyAaa qabaGccqGHsislciGGSbGaai4BaiaacEgacaaMc8UaaeOzamaaBaaa leaacaqG0bGaey4kaSIaaeyAaiabgkHiTiaaigdaaeqaaOGaaiOlaa aa@4F2F@