Time value
time value
Noun
1. (music) the relative duration of a musical note
(synonym) value, note value
(hypernym) duration, continuance
(classification) music
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 till expiration?
Time value
The premium of an out-of-the money option reflecting the probability that an option will move into-the-money before expiration constitutes the time value of the option. There also may be some time value in the premium of an in-the-money option, which reflects the probability of the option moving further into the money. To determine the time value of an in-the-money option, subtract the amount by which the option is in-the-money (intrinsic value) from the total premium.
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