1. Which of the following statements accurately describe option positions?

Buying the right to buy an underlying asset is referred to as a long call.

Buying the right to sell an underlying asset is referred to as a short call.

More than one of the other statements are correct.

Selling the right to buy an underlying asset is referred to as a long put.

None of the other statements are correct.

2. Pinder Ltd is an electronics, home, and whitegoods retailer. It recently completed a takeover of Value Co which sells home entertainment systems, small and large kitchen appliances including washing machines, refrigerators etc. This takeover can be best classified as a

Hostile takeover

Conglomerate takeover

Vertical takeover

None of the others.

Horizontal takeover