Finra Exam Series-7 Topic 7 Question 101 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 101
Topic #: 7

[All Series-7 Questions]

What is the possible reward for investing in raw land?

Adeferred income

Blarge deductions

Cpotential capital appreciation

Dlack of investment risk

Show Suggested Answer

Suggested Answer: A

$200. Since XYZ is trading at 72, a November 65 call has an intrinsic value of $700. A sale at that value compared to the cost of $300 is a profit of $400. Subtract the loss of $200 on the expired put to obtain the profit of $200.

by Bambi at Sep 16, 2024, 05:36 AM

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Georgeanna

4 hours ago

I agree with Vicky, potential capital appreciation is a great reward for investing in raw land.

upvoted 0 times

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Vicky

1 days ago

I think the possible reward for investing in raw land is potential capital appreciation.

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