RDP 8902: Option Prices and Implied Volatilities: An Empirical Analysis Equation (8a)

( Σ i=1 k ε t+i ) 2 =α+βk σ 2 ( t,t+k )+ γz t +v t+k MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaWaaeWaaeaada WfWaqaaiabfo6atbWcbaGaaeyAaiabg2da9iaaigdaaeaacaqGRbaa aOGaaeyTdmaaBaaaleaacaqG0bGaae4kaiaabMgaaeqaaaGccaGLOa GaayzkaaWaaWbaaSqabeaacaaIYaaaaOGaeyypa0JaeqySdeMaey4k aSIaeqOSdiMaae4Aaiabeo8aZnaaCaaaleqabaGaaGOmaaaakmaabm aabaGaaeiDaiaacYcacaaMc8UaaeiDaiaabUcacaqGRbaacaGLOaGa ayzkaaGaey4kaSIaae4SdiaabQhadaWgaaWcbaGaaeiDaaqabaGcca qGRaGaaeODamaaBaaaleaacaqG0bGaae4kaiaabUgaaeqaaaaa@5ABA@