$1\mathrm{.}2(5$ points$)$: Concerning the return on a currency trade strategy, which of the following statements is FALSE:

$($A$).$ The currency return differs from the $\%$ change in the exchange rate because the currency return involves interest rates.

$($B$).$ The currency return is related to whether CIP is violated or not.

$($C$).$ The currency return is unrelated to whether UIP is violated or not.

$($D$).$ The currency return differs from the stock return because the stock return does not involve interest rates.

$1\mathrm{.}3(5$ points$)$: Concerning the FX forward markets, and assume that there are no arbitrage opportunities, which of the following statements is TRUE:

$($A$).$ A currency traded at a forward discount will surely depreciate in the future.

$($B$).$ A currency traded at a forward premium will surely appreciate in the future.

$($C$).$ A currency with lower interest rate than the U$.$S$.$ interest rate is surely traded at a forward premium against USD in the FX forward market.

$($D$).$ Taking a long position in a currency traded at a forward premium and a short position in a currency traded at a forward discount will surely generate profits.