Answer the Question or Solve the Problem

question 53

Multiple Choice

Answer the question or solve the problem.
-From a point on a straight road, John and Fred ride bicycles in opposite directions. John rides 7 miles per hour and Fred rides 5 miles per hour. In how many hours will they be 60 miles apart?

• A) 4 hours
• B) 5 hours
• C) 6 hours
• D) Not enough information

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Definitions:

Derivative Security

A financial instrument whose value is based on the value of an underlying asset, such as stocks, bonds, commodities, or market indexes.

American Put Option

A put option that gives the holder the right to sell an asset at a specified price anytime before the expiration date.

Exercise Price

The specified price on an option contract at which the option holder can buy or sell the underlying asset.

Netscape Stock

Represents the shares of Netscape Communications Corporation, a company once dominant in the web browser market before being acquired by AOL.