Definitions for "theoretical value"
In options pricing, the hypothetical value of an option as calculated by the Black-Scholes Option Pricing Model.
THEORETICAL PRICE This is the mathematically calculated value of an option. It is determined by (1) the strike price of the option, (2) the current price of the underlying, (3) the amount of time until expiration, (4) the volatility of the underlying, and (5) the current interest rate. OptionVue 5 has a theoretical price (Th.Pr) for each option in the Matrix.
An option value generated by a mathematical option's pricing model to determine what an option is really worth.
Keywords:  theta, thin, market
Theta Thin market