Thenwecanthinkoftherebalancingcostasafunctionof Thereforewecomputetherebalancingcost termed aspartofthetotalhedgingcostsfacedbytheoptionsmarketmakersIftheOMMsusestatichedging withnorebalancingforvolatilitychanges maybeofsecondaryimportance Aswedonothavethisinformation weincludethiscostproxyintheregressionanalyses Other...