See Also: FINANCE(finance)
finance(1)(dictionary)
Finance(money)
finance(encyclopedia)
finance(2)(dictionary)
BMW Finance N.V.(finance)
Personal finance(finance)
Finance mortgage(finance)
finance 1, noun(dictionary)
Internal finance(money)

Time value (finance)


Applies to derivative products for 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 until expiration.