TIME VALUE OF AN OPTION


Meaning of TIME VALUE OF AN OPTION in English

The portion of an option's premium that is based on the amount of time remaining until the expiration date of the option contract , and that the underlying components that determine the value of the option may change during that time. Time value is generally equal to the difference between the premium and the intrinsic value . Related: in-the-money .

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.