Time Premium

Time Premium
It is the difference between the option value and the intrinsic value of the option. The option value more than the existing exercise value represents the risk associated with underlying asset, the quantity of riskless return and the control of optionholder till the expiry date. It is also known as the time value.

Random Finance Terms for the Letter T

Related posts:

  1. Time Value of an Option
  2. Time Until Expiration
  3. Time Deposit
  4. Time Value of Money
  5. Time-Weighted Rate of Return

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