Which of the following statements is not correct?

a.

If the law of one price holds for all goods then APPP holds immediately.

b.

If the implied spot rate is larger than the current spot rate then absolute PPP is violated.

c.

the currency being expressed in (b) is undervalued.

d.

If the US nominal interest rate = 5%, and Australian nominal interest rate = 4%, then the forward rate (USD/AUD) will be at a discount to the spot rate to equalize returns.