To find out whether the model misspecification matters for hedging accuracy, we carefully select six increasingly …) Heston types, with or without jump-diffusion) with randomly given well-defined parameters. We access the hedging accuracy of … six models under the dynamic hedging framework of He et al. (2006) and Kennedy et al. (2009), and apply the Fourier …

existing belief elicitation results, (ii) can we avoid potential hedging confounds? Our results instill confidence regarding … both issues. We propose an experimental design that eliminates hedging opportunities, and use this to test for the … empirical relevance of hedging effects in the lab. We find no evidence for hedging, comparing the standard "hedging …