Which of the following statements is false

	The price of a security should equal to the present value of its cash flows, up to the transaction costs of trading the security and the cash flows.
	In most markets, you must pay transactions costs to trade securities.
	Because you will generally pay a slightly lower price when you buy a security (the ask price) than you receive when you sell (the bid price) you will pay the bid-ask spread.
	No arbitrage opportunities will exist until the underlying prices diverge by more than the amount of the transaction costs.