Time value premium

Definition:

The amount by which an option's total premium exceeds its intrinsic value.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Revaluation

An increase in the foreign exchange value of a currency that is pegged to other currencies or gold.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio