True or false ?

1) The current U.S. dollar-yen spot rate is 125/$. If the 90-day forward exchange rate is 127/$ then the yen is at a forward premium.

2) A U.S. investor has a choice between a risk-free one-year U.S. security with an annual return of 4%, and a comparable British security with a return of 5%. If the spot rate is $1.43 per one , the forward rate is $1.44 per one , and there are no transaction costs, the investor should invest in the U.S. security.

3)Both covered and uncovered interest arbitrage are risky operations in the sense that even without default in the securities, the returns are unknown until all transactions are complete.

4) All that is required for a covered interest arbitrage profit is for interest rate parity to not hold.