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

ε t+k =log S t+k log S t+k1 , MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaaeyTdmaaBa aaleaacaqG0bGaae4kaiaabUgaaeqaaOGaeyypa0JaciiBaiaac+ga caGGNbGaaGPaVlaabofadaWgaaWcbaGaaeiDaiaabUcacaqGRbaabe aakiabgkHiTiGacYgacaGGVbGaai4zaiaaykW7caqGtbWaaSbaaSqa aiaabshacaqGRaGaae4AaiabgkHiTiaaigdaaeqaaOGaaiilaaaa@4E39@