Time value of an option - The portion of an options premium that is based on the amount of time remaining until the expiration date of the option contract, and 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 an options premium that is based on the amount of time remaining until the expiration date of the option contract, and 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.