A stock is currently trading at $120, and the risk free rate is 4%. A 6 month forward contract offers a forward price of $125. What would we do if an arbitrage exist? What would be the most likely plan of action that we will take.

I know that the stock is valued at $122.37 and that we have arbitrage. I am asking if we would sell the stock and go into the long position or buy the stock and enter into a short forward position.