In the context of the binomial option pricing model for American put options, an increase in the time to maturity will reduce the early exercise premium. TRUE OR FALSE

A forward interest rate that is equal to 100% implies that there is an arbitrage opportunity. TRUE OR FALSE

In the context of the economic value added (EVA) firm valuation model, it is assumed that there is perfect competition in the capital market. TRUE OR FALSE

A two-state one-period binomial option pricing model with PV$1_u = $0.00 and PV$1_d = $1.00 contains an arbitrage opportunity. TRUE OR FALSE

In the context of relative valuation, the PE ratio will always be greater than the EV/EBIT ratio. TRUE OR FALSE