An investor currently holds an American call option on a stock XYZ. The option has 2 months to expiry. The current price of XYZ is $27, and the strick price is $20. The risk-free rate is 4%. The market price for the call option is $7.50. Discuss the possible courses of action available to the investor. Give pros and cons for each action.

[5] An investor currently holds an American call option on a stock XYZ. The option has 2 months to expiry. The current price of XYZ is $27, and the strick price is $20. The risk-free rate is 4%. The market price for the call option is $7.50. Discuss the possible courses of action available to the investor. Give pros and cons for each action