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

ε t+1 2 =a+Σ b i ε ti 2 +c σ t 2 MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaeqyTdu2aa0 baaSqaaiaabshacaqGRaGaaeymaaqaaiaaikdaaaGccqGH9aqpcaqG HbGaey4kaSIaeu4OdmLaaeOyamaaBaaaleaacaqGPbaabeaakiaabw 7adaqhaaWcbaGaaeiDaiabgkHiTiaabMgaaeaacaaIYaaaaOGaey4k aSIaae4yaiabeo8aZnaaDaaaleaacaqG0baabaGaaGOmaaaaaaa@4BA9@