The Longer an Investor Holds a Long Call Butterfly Spread

question 8

True/False

The longer an investor holds a long call butterfly spread position,everything else the same,the greater the distance between the breakeven stock prices.

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Definitions:

Argument By Analogy

A form of reasoning where a similarity between two different things is used to draw a conclusion or make a point about one of them.

Similarity

The state or fact of being similar; resemblance or likeness in qualities, characteristics, or appearance.

Single Example

A specific instance or case used to illustrate a general concept or principle.

Inductive Generalization

A method of reasoning in which conclusions are drawn about generalities from specific instances.