time value


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Related to time value: Time value of money

Time value

Applies to derivative products. Portion of an option price that is in excess of the intrinsic value, due to the amount of volatility in the stock; sometime referred to as premium. Time value is positively related to the length of time remaining until expiration.

Time Value

1. See: Option time value.

2. See: Time value of money.

3. See: Extrinsic value.

time value

The portion of an option premium in excess of the option's intrinsic value. A call option that allows the holder to buy 100 shares of a $25 stock for $20 (the strike price) has an intrinsic value of $500. The time value is $150 if the option trades for $650.
References in periodicals archive ?
The proposition by DeVoe and Pfeffer (2011) that high economic value of time increases time pressure remains reasonable on the condition that both the high and low time values reach or surpass individuals' expectations.
If one has 12$ in time t and 14$ in time t+1, while all the factors, specially time value of money, are the same in these two time periods, thus progress had happed.
The discount rate is made up of two components, the risk-free rate (to compensate for the time value of money] and the risk rate (to compensate for the uncertainty of the expected future cash flows].
Stock options Exercise when (non-qualified): time value When to reaches exercise?
This means that the backoff time value for the beacon frame equals zero.
in a period when a $5,000 policy was considered a big policy, the time value of money was not a significant issue, especially when interest rates were very low.
However, if you viewed money as having a time value of 18 percent, the present value of that $1.25 payment at the end of each year for the next three years is $2.72 ($1.25 x 2.174 = $2.7175).
To neutralize the cost-of-time value, the upper strike is set so that the premium from sale of the option equals the time value component of the long call's cost.
Consider deferring income and accelerating deductions to take advantage of the time value of money.
Time value of money concepts suggest that having future cash sooner equals more profit and more profit is good.
In calculating franchise value, future profits are adjusted for the time value of money as well as for the firm's survival probability--its ability to avoid extreme losses that would impair its profitability or survival.