Consider a six-month forward contract on a non-dividend paying stock. Assume the current stock price is $50 and the risk-free interest rate is 7.84% per annum with continuous compounding. Suppose the price of this six-month forward price is $53.50.

Show that it creates an arbitrage opportunity? Write down the complete strategy for an arbitrageur --- you must list down all the actions that are required now and later and demonstrate how arbitrageur earns a risk-less profit.