Time premium

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 ?
The senators were told that insurance coverage provides up to Rs1 million against a one time premium of Rs2,500 for five years.
Apart from the shamefully abandoned 'One Time Premium', can he tell Ghanaians how he is going to fund and improve NHIS?
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.
The Netflix revenue model alone, based on limited time premium content availability, should have the studios salivating about the possibility of a subscription to high-quality versions of anything in the vaults.
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. Hence, the great attention to detail given to the outer facade has now been translated into servicing one's verbal appearance.
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.
The types of product promoted are Provest Max Link, which constitutes unit link with single premium payment and Provestara Purna Link, which constitutes unit link with time premium payment.
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.
An average of 15,000 viewers per day are said to call the pounds 1 a time premium rate number.
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.