The information of the forward price and stock price is provided below:

Forward price F0 $225

Stock/Spot Price S0 $200

Maturity date of Forward Contract (4 years) T 4

Risk-free Rate r 4%

(1) By using the information above and applying the Cost-of-Carry Model, verify if there is an arbitrage opportunity.

(2) In addition, clearly explain and illustrate the arbitrage ("Cash-and-Carry" or "Reverse Cash-and-Carry") strategy and compute the arbitrage profit. The "Cash-and-Carry" strategy should demonstrate how a portfolio of forward, stock, and risk-free lending/borrowing can produce risk-free arbitrage profit.