Evaluate each of the following statements (True or False).

a) Purchasing power parity suggests that the forward premium will be determined by the difference in inflation rates between the two countries.

b) In the presence of bid-ask spreads, arbitrage opportunities are easier to identify.

c) The theory of international Fisher effect is based on the interest rate differential and therefore is an application of the theory of interest rate parity.

d) Arbitrage traders contribute to widening discrepancies in the exchange rates across different markets.