theoretical value

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Theoretical value

Applies to derivative products. Mathematically determined value of a derivative instrument as dictated by a pricing model such as the Black-Scholes model.

Theoretical Value

In options and futures contracts, a mathematically derived estimate of the value of the contract. The most frequently used method to calculate the theoretical value is the Black-Scholes Pricing Model. Depending upon the efficiency of the market and/or the presence of inside information, an option may trade at, above, or below its theoretical value. The concept has come under criticism for not accurately describing true market value: because theoretical value is based on past performance, it does not take into account potential future events such as changes in demand.

theoretical value

The calculated price at which a security should sell. Depending upon investor expectations and market imperfections, a security may sell at a price above or below its theoretical value.
References in periodicals archive ?
Theoretical values of the order 1.2 1.5 1.8 [C.sub.[alpha] [[mu]F[s.sup.[alpha]-1]] 46.9 1.7 0.062 [C.sub.2] [nF] 10 10 10 [R.sub.1] = l/[][[OMEGA]] 26 133 178 [R.sub.2] = 1/[g.sub.m2] [[OMEGA]] 878 174 130 TABLE IV.
Table-4: Experimental and theoretical values of selected bond lengths (A) of title compound (atomic labels are in accordance with ORTEP plot).
central bank as someone who will rely more on data-informed judgment and less on some of the models and theoretical values that have shaped the Fed's course in recent years but that Powell has said can be false guides.
Based on this standard curve and given precipitation in this northern area, the theoretical values of [[delta].sup.2]H stable isotope in the B.
But hard reality of life and theoretical values often do not meet on the common ground.
On a final note, it is important to consider that MVs are not at all theoretical values. The cash-able aspect is more real than you might think.
Comparing the experimental and theoretical values of temperature, it can be shown that only 60% of theoretical values of frictional forces appear such as effective heat on surface.
Figure 5 brings forth the comparison of the corrected computational method of monthly mean U as well as theoretical values of ZDPJ3 and ZDPJ4 of different materials.
We also adopt the dynamic forecasting method discussed in [2] to obtain more accurate theoretical values.
As shown in Figure 7, the theoretical values from Equation (7) for test specimens of different sizes and span-to-depth ratios exhibited a good consistency with the experimental observations in both the boundary-affected zone and the uninfluenced zone.
It is shown in Figure 7 that the experimental values of groundwater level were consistent with the variation trend of theoretical values. The theoretical and experimental water levels in both dewatering methods changed rapidly near the dewatering well and much slower in further distance.
The traditional theoretical values for molar heat capacities [eq.