A Recent Survey of Local Cell Phone Retailers Showed That

question 7

Multiple Choice

A recent survey of local cell phone retailers showed that of all cell phones sold last month, 64% had a camera, 28% had a music player and 22% had both. The probability
That a cell phone sold last month did not have either a camera or a music player is

• A) .22
• B) .70
• C) .92
• D) .30
• E) .08

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Definitions:

Underlying Asset

An asset (such as a stock, bond, commodity, or currency) upon which a derivative instrument, such as an option, is based.

Interest Rate Futures

Financial futures contracts that obligate the buyer to purchase an asset (like Treasury bills) with a fixed interest rate at a future date.

Federal Funds

Short-term funds transferred between financial institutions, typically overnight, at an interest rate set by the Federal Reserve in the United States.

Repurchase Agreements

Short-term borrowing for dealers in government securities, where the dealer sells the government securities to investors, usually on an overnight basis, with an agreement to buy them back.