A market maker in stock index forward contracts observes a 6-month forward price of 112 on the index. The index spot price is 110.5 and the continuously compounded dividend yield on the index is 2%.

The continuously compounded risk-free interest rate is 5%.

Describe actions the market maker could take to exploit an arbitrage opportunity using the forward and a synthetic forward (created with the stock and cash) and calculate the resulting profit (per index unit).