A graph $\Gamma $ is called $(G, s)$-arc-transitive if $G \le \text{Aut} (\Gamma )$ is transitive on the set of vertices of $\Gamma $ and the set of s-arcs of $\Gamma $, where for an integer $s \ge 1$ an s-arc of $\Gamma $ is a sequence of $s+1$ vertices $(v_0,v_1,\ldots ,v_s)$ of $\Gamma $ such that $v_{i-1}$ and $v_i$ are adjacent for $1 \le i \le s$ and $v_{i-1}\ne v_{i+1}$ for $1 \le i \le s-1$. A graph $\Gamma $ is called 2-transitive if it is $(\text{Aut} (\Gamma ), 2)$-arc-transitive but not $(\text{Aut} (\Gamma ), 3)$-arc-transitive. A Cayley graph $\Gamma $ of a group G is called normal if G is normal in $\text{Aut} (\Gamma )$ and nonnormal otherwise. Fang et al. [‘On edge transitive Cayley graphs of valency four’, European J. Combin. 25 (2004), 1103–1116] proved that if $\Gamma $ is a tetravalent 2-transitive Cayley graph of a finite simple group G, then either $\Gamma $ is normal or G is one of the groups $\text{PSL}_2(11)$, $\text{M} _{11}$, $\text{M} _{23}$ and $A_{11}$. However, it was unknown whether $\Gamma $ is normal when G is one of these four groups. We answer this question by proving that among these four groups only $\text{M} _{11}$ produces connected tetravalent 2-transitive nonnormal Cayley graphs. We prove further that there are exactly two such graphs which are nonisomorphic and both are determined in the paper. As a consequence, the automorphism group of any connected tetravalent 2-transitive Cayley graph of any finite simple group is determined.

Let $G$ be a finite nonabelian simple group and let $\Gamma$ be a connected undirected Cayley graph for $G$ . The possible structures for the full automorphism group ${\rm Aut}\Gamma$ are specified. Then, for certain finite simple groups $G$ , a sufficient condition is given under which $G$ is a normal subgroup of ${\rm Aut}\Gamma$ . Finally, as an application of these results, several new half-transitive graphs are constructed. Some of these involve the sporadic simple groups $G = J_1, J_4$ , Ly and BM, while others fall into two infinite families and involve the Ree simple groups and alternating groups. The two infinite families contain examples of half-transitive graphs of arbitrarily large valency.