7. The next question deals with a different type range option, called a range accrual option. Range accrual options can be used to take a view on volatility directly. When a trader is short volatility, the trader expects the actual volatility to be less than the implied volatility. Yet, within the bounds of classical volatility analysis, if this view is expressed using a vanilla option, it may require dynamic hedging, otherwise expensive straddles must be bought. Small shops may not be able to allocate the necessary resources for such dynamic hedging activities.