static hedging strategy to prove that early exercising a nondividend paying call option is never optimal. The argument only says that early exercising is not in the best interest of the option holder. Argue that if such early exercisers 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. Make all the standard assumptions.