What does the masthead light indicate on a power-driven vessel?

The masthead light serves a critical function on power-driven vessels by illuminating forward and to both sides. This design is essential for navigation as it makes the vessel visible to other mariners, indicating its presence and direction of travel, particularly in low visibility conditions. The light's position on the vessel's mast ensures that it can be seen from a distance, warning other vessels of the approaching power-driven vessel and helping to prevent collisions.

The other options do not accurately describe the purpose of the masthead light. The light does not shine to the rear of the vessel or indicate the status of the vessel, such as whether it is anchored or underway. Additionally, while proper lighting is important during docking, the masthead light itself is not specifically designed for that purpose. Its primary role is to ensure visibility and safety while navigating waterways.