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

( T( t+1 ) ) σ 2 ( t+1,T )= Σ i=2 Tt E t+1 ( ε t+i 2 ). MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaWaaeWaaeaaca qGubGaeyOeI0YaaeWaaeaacaqG0bGaey4kaSIaaGymaaGaayjkaiaa wMcaaaGaayjkaiaawMcaaiabeo8aZnaaCaaaleqabaGaaGOmaaaakm aabmaabaGaaeiDaiabgUcaRiaaigdacaGGSaGaaGPaVlaabsfaaiaa wIcacaGLPaaacqGH9aqpdaWfWaqaaiabfo6atbWcbaGaaeyAaiabg2 da9iaaikdaaeaacaqGubGaeyOeI0IaaeiDaaaakiaaykW7caqGfbWa aSbaaSqaaiaabshacqGHRaWkcaaIXaaabeaakmaabmaabaGaaeyTdm aaDaaaleaacaqG0bGaey4kaSIaaeyAaaqaaiaaikdaaaaakiaawIca caGLPaaacaGGUaaaaa@5BE5@