"This paper proposes a method for constructing a volatility risk premium, or investor risk aversion, index. The method … option-implied volatility measures. A small-scale Monte Carlo experiment suggests that the procedure works well in practice … volatilities results in significant temporal dependencies in the estimated stochastic volatility risk premium, which we in turn …

introduces the main elements of the duality theory (DT) in economics. Next, it proposes the context of IUFs as a suitable … under the expected utility theory (EUT) are somewhat subject to context. Other findings imply that the risk premium (RP), as …