RDP 8902: Option Prices and Implied Volatilities: An Empirical Analysis Equation (7a)

k σ 2 ( t,t+k )= E t ( Σ i=1 k , ε t+i ) 2 MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaae4Aaiabeo 8aZnaaCaaaleqabaGaaGOmaaaakmaabmaabaGaaeiDaiaabYcacaaM c8UaaeiDaiaabUcacaqGRbaacaGLOaGaayzkaaGaeyypa0Jaaeyram aaBaaaleaacaqG0baabeaakmaabmaabaWaaCbmaeaacqqHJoWuaSqa aiaabMgacqGH9aqpcaaIXaaabaGaae4AaaaakiaacYcacqaH1oqzda WgaaWcbaGaaeiDaiabgUcaRiaabMgaaeqaaaGccaGLOaGaayzkaaWa aWbaaSqabeaacaaIYaaaaaaa@5127@