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Argue that if early exercisers of the call option exist, then an arbitrage opportunity is there for you to make a risk-free profit. Assume you
Argue that if early exercisers of the call option exist, then an arbitrage opportunity is there for you to make a risk-free profit. Assume you only know that such early exercisers exist, but you do not know when they would exercise. Explain how, why and when you can make a risk-free profit. Please explain your trading strategy clearly.
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