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Time premium

• Also called time value, the amount by which the option price exceeds its intrinsic value. The value of an option beyond its current exercise value representing the option holder's control until expiration, the risk of the underlying asset, and the riskless return.

 
 Embedded terms in definition
 Asset
Control
Exercise value
Exercise
Expiration
Intrinsic value
Its
Option price
Option
Return
Risk
Time value
Time
Underlying asset
Underlying
 
 Related Terms
 

<< Time line Time series analysis >>

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