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

ε 2 t+1 =a+Σ b i ε 2 ti +c σ t 2 + υ t+1 MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaeqyTdu2aaW baaSqabeaacaaIYaaaaOWaaSbaaSqaaiaabshacaqGRaGaaeymaaqa baGccqGH9aqpcaqGHbGaey4kaSIaeu4OdmLaaeOyamaaBaaaleaaca qGPbaabeaakiaabw7adaahaaWcbeqaaiaaikdaaaGcdaWgaaWcbaGa aeiDaiabgkHiTiaabMgaaeqaaOGaey4kaSIaae4yaiabeo8aZnaaDa aaleaacaqG0baabaGaaGOmaaaakiabgUcaRiabew8a1naaBaaaleaa caqG0bGaey4kaSIaaGymaaqabaaaaa@5188@