Time premium


Also found in: Wikipedia.

Time premium

Also called time value, the amount by which an option price exceeds its intrinsic value. The value of an option beyond its current exercise value representing the optionholder's control until expiration, the risk of the underlying asset, and the riskless return.

Time Value of Money

A fundamental idea in finance that money that one has now is worth more than money one will receive in the future. Because money can earn interest or be invested, it is worth more to an economic actor if it is available immediately. This concept applies to many contracts; for example, a trade in which payment is delayed will often require compensation for the time value of money. This concept may be thought of as a financial application of the saying, "A bird in the hand is worth two in the bush."
References in periodicals archive ?
From summer 2014, BA is also set to increase connections between London and Tel Aviv with the introduction of a daily four-cabin Boeing 777-200, and for the first time Premium customers will also, be able to fly in the airline's First cabin between London and Jeddah, when a four-cabin Boeing 777 replaces the existing three-cabin Boeing 767 service.
WELSH football legend Neville Southall has set up a pounds 99 a time premium phone service to offer advice on all things football related.
With a downturned economy, selling one's self—skills and personality—on paper is at an all time premium.
One of the strategy's negatives is its high cost, although the triple leverage, absence of margin calls and time premium, and the long-term nature of the strategy make up for this.
In 2004, this opportunity arose and the following year, after completing an extensive redevelopment and rebranding exercise, the Auto: Time Express and Auto: Time Premium time management solutions were released.
An average of 15,000 viewers per day are said to call the pounds 1 a time premium rate number.
Industry insiders said they believed the promotion this week represented the first time premium bacon rashers had been sold on a bogof basis.
The multi-million pound campaign will be the first time Premium Bonds have been plugged on telly for six years.
5 hours of 'C' programs Timeslot (total program time Premium offer food Channel Program shown in brackets) advertisement 7 'Big Arvo' 4.
The charges are shown in Table 2, Columns 5 and 9, where we assume the time premium equals zero and [Alpha] is fixed at 8%, as is assumed by Basle.
At this time Premium is drilling to the east in order to locate the Friday Fault along strike to the south of the current resource area.
By investing in Auto Time Premium software, together with T1000 Biometric HandPunch terminals, Drayton Manor Theme Park has adopted a new approach to time management and staff security.