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What is the possible reward for investing in raw land?
Suggested Answer: A
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$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.
35 comments · newest first
JO
Josphine
11 months ago
I thought raw land was just a gamble, not a sure thing!
LY
Lynsey
11 months ago
Large deductions can be a nice perk too.
GA
Gail
12 months ago
Wait, is there really no investment risk?
DA
Dalene
12 months ago
Definitely agree with that!
PA
Paulene
1 year ago
Capital appreciation is a big one!
FA
Fannie
1 year ago
Potential capital appreciation definitely sounds familiar; I think that's the main reason people invest in raw land!
MI
Micah
1 year ago
I feel like deferred income could be a possibility, but it doesn't sound right for raw land specifically.
SU
Sunny
1 year ago
I remember something about large deductions, but that seems more relevant to other types of investments.
AR
Aretha
1 year ago
I think the reward for investing in raw land might be related to capital appreciation, but I'm not entirely sure.
KR
Kris
1 year ago
I'm a little confused by this question. I know raw land can be a speculative investment, but I'm not sure if any of these answers fully capture the potential rewards. I may need to do some more research before answering.
MA
Mayra
1 year ago
I got this! The answer is definitely C - potential capital appreciation. Investing in raw land is all about betting on the land increasing in value over time as the area develops. Easy peasy.
DE
Denna
1 year ago
Hmm, I'm not sure about this one. I'll have to think it through carefully. Could it be A - deferred income? Or maybe B - large deductions? I'll have to review my notes on real estate investing.
JA
Jamal
1 year ago
I think the answer is C - potential capital appreciation. Investing in raw land can be a way to potentially profit from the land increasing in value over time.
RO
Robt
1 year ago
Ugh, this is a tricky one. I'm leaning towards C, but I'm not totally confident. I know raw land can be risky, so I don't think D - lack of investment risk is the right answer.
YV
Yvonne
1 year ago
Investing in raw land? Sounds like a great way to end up with a plot of dirt and a whole lot of headaches. Where do I sign up?!
AL
Alison
1 year ago
A) deferred income makes the most sense to me. You don't typically get an immediate return on raw land, but the long-term potential is there.
EN
Enola
1 year ago
C) potential capital appreciation
KE
Keneth
1 year ago
A) deferred income
JO
Joaquin
1 year ago
B) large deductions
FL
Florinda
1 year ago
C) potential capital appreciation
ST
Stevie
1 year ago
D) lack of investment risk? Haha, that's a good one! Investing in raw land is about as risky as it gets. That answer is a joke.
MA
Marti
1 year ago
C) potential capital appreciation
MA
Marleen
1 year ago
B) large deductions
MI
Mignon
1 year ago
A) deferred income
NI
Nieves
1 year ago
B) large deductions? Really? I'm not sure that's a valid reward for investing in raw land. Sounds like a stretch to me.
LE
Lenna
1 year ago
B) large deductions can actually be a valid reward, especially for tax purposes. It can help reduce taxable income.
RO
Rozella
1 year ago
C) potential capital appreciation is a common reward for investing in raw land. The value can increase significantly.
MI
Michael
1 year ago
A) deferred income sounds more appealing to me. It's a steady stream of money over time.
QU
Queen
2 years ago
C) potential capital appreciation seems like the most obvious answer here. Raw land can appreciate in value over time as the surrounding area develops.
EL
Elbert
1 year ago
C) potential capital appreciation
NA
Nana
1 year ago
B) large deductions
NG
Ngoc
1 year ago
A) deferred income
GR
Gracie
2 years ago
I believe large deductions could also be a possible reward for investing in raw land.
GE
Georgeanna
2 years ago
I agree with Vicky, potential capital appreciation is a great reward for investing in raw land.
VI
Vicky
2 years ago
I think the possible reward for investing in raw land is potential capital appreciation.