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Company As stock is currently selling at $200 per share. A one-year American call option with strike price $50 trading on the Acme options exchange
Company As stock is currently selling at $200 per share. A one-year American call option with strike price $50 trading on the Acme options exchange sells for $75.
(1) How would you take this opportunity to make a profit?
(2) Suppose the option is a European call option instead, what is your strategy to make a profit?
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