Suppose that the risk-free interest rate is 8% per annum and that the dividend yield on a stock index is 4% per annum (use all rates with continuous compounding) The index is standing at 1000, and the forward price for a contract deliverable in six months is quoted for 1025.

What arbitrage opportunities does this create? Describe the strategy and calculate the profit per share. You can borrow money at risk free rate, buy or short index, enter long or short forward contract quoted in market. Be precise, not vague.