Time Value of an Option
(redirected from Option time value)

Also found in: Wikipedia

0.03 sec.

Time value of an option

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 the idea 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.

Time Value of an Option

The portion of the value of an option determined by the amount of time until it expires and the likelihood that it will be in the money at that time. The time value of an option is generally calculated as the difference between the premium and its intrinsic value. See also: Time value of money.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		Financial browser	?		Full browser	?
No references found			Option Account Option Adjusted Spread Option Agreement Option Chain option contract Option Cycle Option Disclosure Document Option Elasticity Option Exchange Option Fee Option Holder Option Margin Option Mutual Fund Option not to deliver Option Period Option Premium Option Price Option Pricing Curve Option Pricing Model option risk Option Seller Option Series Option Spread Option sur contrat a terme Option Tender Bond Option time value option to purchase Option Writer Option-Adjusted Spread option-growth fund Optional Call Optional Cash Purchase Optional Dividend Optional Payment Bond Options backdating Options Chain Options Class Options Clearing Corporation Options Contract Options contract multiple Options on physicals Options Price Reporting Authority Options Series Options-Income Fund Optionsinhaber Optionskaufer Opushon Ryou Opzione coperta Opzione di acquisto Opzione di ripresa OR			Option Package 1 Option Period Option Periods Option premium Option Premiums Option price Option Prices Option Pricing Curve Option Pricing Curves option pricing model Option Pricing Models option risk Option ROM Option Select Button Option seller Option Sellers Option series Option series Option series Option series Option series Option spread Option Spreads Option style Option sur contrat a terme option switch option tender bond Option Tender Bonds Option time value option to purchase Option to Purchase Additional Insurance Option to Purchase Paid-Up Additions option toggle Option writer Option writer Option writer Option writer Option Writers Option Year Option Year Four Option Year One Option Year Three Option Year Two Option-adjusted spread Option-Adjusted Spreads option-growth fund Option-Income Fund Option-Income Funds optional optional optional optional Optional Additional Insurance Optional Application Tape Optional Assessment Materials Optional Basic Economic Loss Optional Benefit Rider Optional Binding Mandatory Curtailment optional call

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.

Time Value of an Option (redirected from Option time value)

Time Value of an Option
(redirected from Option time value)