About us
Definitions for "time premium"
Keywords:  intrinsic, expiration, optionholder, riskless, exceeds
Related Terms: Time value, Extrinsic value, Intrinsic value, Theoretical value, Time decay, Asian option, Derivative security, Long market value, Debit spread, Theta, Option value, Delta , Out-of-the-money option, Derivative instrument, Fair value, Implied volatility, Out-of-the-money, Derivative, In-the-money, In the money, Delta hedging, Hedge ratio, Black-scholes option pricing model, Current value, Derivatives, In-the-money option, Lookback option, In the money option, Out of the money, Option premium, Collar, Covered put, Long straddle, Time spread, Market value added, Naked put, Underlying asset, Downside protection, Delta neutral, At the money, Covered call, Mark to market, Black-scholes, Straddle, At-the-money, Ratio spread, Conversion, Credit spread, Naked
The amount by which an options premium exceeds its intrinsic value. also called time value.
fxwords.com
Also known as "Time Value", this is the amount that the value of an option exceeds its intrinsic value and is a parameter in the Matrix. It reflects the statistical possibility that an option will reach expiration with intrinsic value rather than finishing at zero dollars. If an option is out-of-the-money then its entire value consists of time premium.
options21.com.au
The difference between an option's price and its intrinsic value, reflecting what investors are willing to pay to speculate on future price changes.
yannipartners.com
View 4 more results