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Xylems 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

Xylems 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) (2 pts.) How would you take this opportunity to make a profit?

(2) (2 pts.) Suppose the option is a European call option instead, what is your strategy to make a profit?

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