Assuming there are no transaction costs or broker fees in the market and

on the $1$st of January $2023$ the United Airlines stock is trading at $$120$ a

share when:

o There is a $5\%$ annual dividend yield paid on the United Airlines stock

o The annual risk$-$free rate is $2\%$

o A $1-$year Forward Contract on the United Airlines stock is quoted at

$$125$

Identify whether or not an arbitrage opportunity exists. If there is an

arbitrage opportunity, outline the trades you would take to avail of it and

the profit you would make if you acted on it$.$