11) How many the following statements are true regarding the Interest Rate Parity (IRP)? 1. If IRP holds then you can still make an arbitrage profit. II. When IRP does not hold, assume no transaction costs, there are opportunities for covered interest arbitrage. III. Relative to Purchasing Power Parity (PPP), IRP are violated (evidence against it) less often. IV. IRP involves law of one price while PPP involves investing between countries. a) 0 c) 2 e) 4 b) 1 d) 3