The Lee model was introduced in the 1950s as an elementary quantum field
theory in which mass, wave function, and charge renormalization could be
carried out exactly. In early studies of this model it was found that there is
a critical value of g^2, the square of the renormalized coupling constant,
above which g_0^2, the square of the unrenormalized coupling constant, is
negative. Thus, for g^2 larger than this critical value, the Hamiltonian of the
Lee model becomes non-Hermitian. It was also discovered that in this
non-Hermitian regime a new state appears whose norm is negative. This state is
called a ghost state. It has always been assumed that in this ghost regime the
Lee model is an unacceptable quantum theory because unitarity appears to be
violated. However, in this regime while the Hamiltonian is not Hermitian, it
does possess PT symmetry. It has recently been discovered that a non-Hermitian
Hamiltonian having PT symmetry may define a quantum theory that is unitary. The
proof of unitarity requires the construction of a new time-independent operator
called C. In terms of C one can define a new inner product with respect to
which the norms of the states in the Hilbert space are positive. Furthermore,
it has been shown that time evolution in such a theory is unitary. In this
paper the C operator for the Lee model in the ghost regime is constructed
exactly in the V/N-theta sector. It is then shown that the ghost state has a
positive norm and that the Lee model is an acceptable unitary quantum field
theory for all values of g^2.Comment: 20 pages, 9 figure