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For the question in your title, The mean reversion of the volatility is due to the Moving Average part of the volatility process. The solution would be to set $\beta = 0$. In other words you have to use an AR process for the volatility (so an ARCH model for price). The restriction in p and q come from the estimation process of the parameters. You test ...


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The reason the SPAN method looks complicated is that it is used for calculating the margin requirements for portfolios of options and futures, and therefore has to deal with changing volatilies as well as spot prices. If you just want to calculate the margin requirement for futures, in principle it is much simpler, as you just need to worry about moves in ...



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