4. A put and a call are selling for $5 each on a share of stock currently worth $50. Both the put and call expire in one year and have exercise prices equal to $50. The market for stocks and options are perfectly efficient, with no-arbitrage pricing evident.
a. What is the riskless return rate in this economy?
b. How would your answer to part a of this question change if investors were strongly risk averse?
c. In this same economy, suppose that the spot price of gold is $1,800 per ounce. What is the futures price of an ounce of gold assuming that the Expectations Hypothesis for futures pricing holds? Ignore part d of this question to answer this part c.
d. Now, assume a single exception to perfect market efficiency, with the annual cost of storing gold being $2 per ounce. However, the riskless interest or return rate is still consistent with the correct answer for part a. Would this futures market for gold more likely be in contango, backwardation, both or neither?
5. In a discreet, two-period, perfectly efficient market, a stock is selling for $1 per share. In each of the two one-year periods in this economy, the stock’s price will either double or drop in price by 40%. All riskless bonds will yield 10% each year; that is, the yield curve is flat. You may assume that markets are efficient and allow for no-arbitrage pricing. What is the time-zero (now) no-arbitrage market value of a 2-year call in this economy if its exercise price equals 2?
1. Creator’s Purpose Tool*: What is the general motivation behind Paul’s letter to the Galatian church?
Paul composed this letter to the Galatian individuals for some reasons, yet his general motivation behind composing this letter was to address the inappropriate way that the Galatian individuals were carrying on with the Christian life. The Galatians were regarding the Jewish law as necessities to enter in salvation, so Paul was writing to reveal to them that the Jewish law ought to be treated as an impact of accepting the Gospel (Fee). Basically, Paul was adjusting the Galatians and asking them to depend on God’s elegance for salvation, not their fulfillment or adherence to the laws of the Jewish Torah. Paul clarifies in Galatians that the Jewish law was never again the way to salvation.
2. Setting Tool*:
a. How are Paul’s announcements in Gal. 5: 16–18 and Gal. 5:24–26 identified with his announcements in Gal. 5:19–23?
Paul’s announcements in Galatians 5:16-18 and 5:24-26 are identified with what he said in Galatians 5:19-23 in light of the fact that the each of the three entries talk about the Spirit here and there. 5:16-18 and 5:24-26 discussion about or even direction the Galatian adherents to stroll in the Spirit. Strolling in the Spirit can be characterized as living under the constant control and direction of the Holy Spirit, which God provides for Christians as an advisor. 5:19-23 is about the Christian life when the Spirit isn’t in charge, and the evil nature that all people are powerless also is on the position of authority of a Christian’s life. These refrains show the disparity between crafted by the fragile living creature and the product of the Spirit (Gromacki,).
b. How are his announcements in Gal. 5:19–23 identified with the book’s general reason?
The explanations that Paul makes in Galatians 5:19-23 are identified with the book’s motivation since Paul was reminding the Galatian individuals about the right method to carry on with the Christian life, which is to maintain a strategic distance from the corrupt nature that Galatians 5:19-23 discussions about. Paul concentrated on the wrongdoings that Christians battle with in 5:19-23, and the motivation behind the book is to show the Galatians the Christian life.
3. Structure Tool*: How does Paul compose his announcements in Gal. 5:19–23?
This section is primarily about the signs of the fragile living creature and the Spirit. 5:19-21b is a rundown of the wrongdoings that comprise the physical works. 5:19 frameworks the sexual sins that Paul was worried about. A dismissal of the Christian direction to love God is contained in 5:20a. 5:20b-21a layouts sins that are social in nature. 5:21b notices the transgressions of party. An admonition about judgment is the principle component of 5:21c. At long last, the product of the Spirit are clarified in 5:22-23 (Schreiner,).
4. Connecting Words Tool: Identify the Linking Words in Gal. 5:19–23 (ESV) and clarify their importance.
The first connecting word found in this entry is “and”, which is utilized to append the different works of the fragile living creature and the products of the soul together. Another connecting word that I discovered is “as”, which is utilized to allude to Paul’s past notice to the Galatians. “But” means the change from crafted by the substance to the product of the Spirit. At the point when Paul utilizes “yet” in refrain 22, he exhibits the distinction between the wrongdoings that are legitimately against God, and the result of the Spirit in the lives of Christians.
5. Parallelism Tool: Identify any parallel connections in Gal. 5:19–23.
The parallel relationship that I found in this section is the connection between the demonstrations of the evil nature and the product of the Spirit. Paul looks at these two perfect inverses by posting both and referencing the results of the evil nature.
6. Jargon Tool:
a. What is the Greek word Paul utilizes in Gal. 5:22 that is interpreted “natural product” in the ESV?
Karpos
b. As indicated by Thayer’s Greek Lexicon, what is this current word’s scope of significance (see www.biblehub.com or www.blueletterbible.org)?
“Karpos” can mean strict organic product from trees, an impact or result, acclaims, or a reap of everlasting
life.
c. What is the logical significance of this word in Gal. 5:22?
The logical significance of “karpos” in Galatians 5:22 is work, act, or deed, which alludes the product of the Spirit.
7. Interpretations Tool: Read the interpretations of Gal. 5:19–23 in the NASB, HCSB, and NLT. Recognize the contrasts between these interpretations of this content.
There’s few contrasts between each of the three interpretations in the words used to portray crafted by the tissue. Another distinction is the admonition in refrain 21b, wherein the NLT says that “anybody carrying on with that kind of life won’t acquire the Kingdom of God”, however the NASB is says that “the individuals who practice such things won’t acquire the realm of God”. This is a significant contrast since carrying on with a way of life can have a totally unexpected importance in comparison to rehearsing a transgression.
8. Redundancy Tool: Identify any significant cases of reiteration in Gal. 5:19–23 and clarify their criticalness?
The main occasion of redundancy in this entry is the use of two unique records. The primary rundown concerning crafted by the substance is rehashed or reflected in the rundown about the product of the Spirit. Another case of reiteration is the results that accompany every one of these differentiating ways of life.
9. Type Tool*:
a. What is the class of Galatians?
Galatians is a book of the class known as an epistle (George). Generally, Galatians is thought of as an epistle, yet it is in fact not an epistle because of the composing style. Paul was not an academic man, and Galatians mirrors his character and capacities. The familiarity of Galatians is one of the primary segments of the composing which makes it hypothetically not an epistle.
b. How does this influence the manner in which that you peruse and translate Gal. 5:19–23?
The way that Galatians is a letter composed from Paul to a gathering of individuals changes the manner in which that Christians these days should ponder Galatians. Galatians 5:19-23 could be translated as a rundown for all Christians to submit to, or it could be deciphered as directions exclusively for the Galatian chapels. The contention could be made that this Scripture is material to all Christians since it is God-relaxed. Notwithstanding, despite the fact that all Scripture is appointed by God, not all applications that are drawn from it are. I feel that these sections can be applied to the cutting edge Christian’s life since they are as per different entries of Scripture that manage these issues.
10. Book of scriptures Time Line Tool:
a. How is Gal. 5:19–23 identified with the Bible’s timetable?
Galatians 5:19-23 is found after reclamation and before the new creation.
b. How is Gal 5:19–23 identified with crafted by Christ and the gospel?
Crafted by Christ and the gospel identifies with Galatians 5:19-23 since this stanza talks about the organic product that is delivered with Christ is working in adherents through the Holy Spirit.
c. Which scriptural covenant(s) gives the background to Gal. 5:19–23?*
The New Covenant gives the background for Galatians 5:19-23 on the grounds that accepting the finesse of Jesus Christ was the main method for salvation when this book was composed (Gromacki).
11. “So What?” Tool: How can the facts in Gal. 5:19–23 be lived out by you as Christ-supporter? What sort of circumstances would the facts in Gal. 5:19–23 adequately address when tending to: 1) individual Christ-supporters; and 2) un-adherents?
These facts can be lived out by Christ-supporters by enabling the Holy Spirit to lead, control and secure all through the day by day life of the Christian. The facts in this stanza would address circumstances of routine sin and the everyday use of Biblical certainties as a Christian. Un-devotees could be helped by this section since it gives a reasonable clarification of the innate sin nature that all people, adherents and non-adherents the same battle with.
Works Cited
Expense, Gordon. Galatians: Pentecostal Commentary. Deo Publishing, 2007.
Gromacki, Robert Glenn. Stand Fast in Liberty: An Exposition of Galatians. Kress Christian Press, 2002.
George, Timothy. Galatians. B and H, 1994.
Schreiner, Thomas R. Analytical Commentary on the New Testament: Galatians. Zondervan, 2008.