Plane a Is Flying at 350 Mph in the Northeast

question 34

Multiple Choice

Plane A is flying at 350 mph in the northeast direction relative to the Earth.Plane B is flying at 460 mph in the north direction relative to the Earth.What is the direction of motion of Plane B as observed from Plane A?

• A)70.7° N of E
• B)49.3° N of W
• C)40.7° N of W
• D)19.3° N of W
• E)48.2° N of E

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Definitions:

Writer of a Call Option

The individual or entity that sells a call option and has the obligation to sell the underlying asset at the set strike price if the option is exercised.

Buyer of a Put Option

An investor who acquires the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a set time frame.

Underlying Asset

The financial asset upon which a derivative's price is based, including stocks, bonds, commodities, currencies, interest rates, and market indexes.

European Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price before or at a specified expiration date.