Which of the following iscorrect? Please show your reasonings.

1. A swap contract is an exchange-traded security.
2. A swap contract can be replicated by combining a position in the spot asset and money market account.
3. Under the Modigliani-Miller assumptions, you can make a profit by applying the Build-and-Break approach.
4. It is easy to arbitrage a structured note that is overvalued relative to its replicating portfolio by short-selling the structured note.
5. Structured notes provide an alternative investment opportunity for retail investors.