Pre-hedging

The authors thank Hendrik Bessembinder, Agostino Capponi, Paolo Guasoni, Simon Goldsworthy, Mark Higgins, Howard Lello, Joshua Mollner, Anthony Neuberger, Marcel Nutz, Andrew Patton, Kevin Rodgers, Duane Seppi, and Kevin Webster for helpful comments. The very detailed and insightful remarks of two anonymous referees, an anonymous associate editor, and the area editor Xuedong He are also gratefully acknowledged.