time value

Definition of "time value"
  1. The part of an option's cost that considers the chance it will be profitable due to remaining time before it expires, exceeding its inherent worth
How to use "time value" in a sentence
  1. Due to its time value, the long-term contract becomes progressively advantageous.
  2. The decline in the stock's time value resulted in a lower premium for the option.
  3. As the expiration date approaches, the time value of an option diminishes.

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