Rationale behind Forward price = Stock price compounded at the risk free rate

Dear all,

Can someone please help with reminding me of the rationale behind this non-arbitrage formula :
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Why would paying for more than the non-arbitrage price constitutes an arbitrage opportunity?

Is it because the seller can borrow at the risk free rate, to hedge his short forward position by buying the stock, so we are paying him exactly the cost of his hedge?

Regards.

Yes.