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: This research tests the "unbiasedness hypothesis" for forward volatility. It concludes that forward implied volatility is a systematically biased predictor that often overestimates future spot volatility in foreign exchange. Download FWD, Vol zip
: Traders use forward equations (such as those by Bruno Dupire ) to price options or extract implied volatilities from current market data using methods like the Fokker-Planck equation. AI responses may include mistakes