Which of the following is false?

Question 1 options:

	Given a home country and a foreign country, purchasing power parity (PPP) suggests that a home currency will depreciate if the current foreign inflation rate exceeds the current home inflation rate.
	If one bank's bid price for a currency is greater than another bank's ask price for the currency, the locational arbitrage is feasible.
	Forward expectations parity (FEP) states that any forward premium or discount is equal to the change in the exchange rate.
	Given a home country and a foreign country, IFE (Internatioal Fisher Effect) suggests that a home currency will appreciate if the current foreign interest rate exceeds the current home interest rate.