time premium

noun

The amount by which an option price exceeds its intrinsic value.

Similar
time value
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Meanings

nountime premium (plural time premiums)

plural time premiums

  1. businessThe amount by which an option price exceeds its intrinsic value.

    Synonyms: time value

Synonyms & antonyms

nounThe amount by which an option price exceeds its intrinsic value.

Similar
time value
Also see
time value
Cite this entry
APA

time premium. (n.d.). In WatkinsX Dictionary. Retrieved November 2, 2026, from https://dictionary.watkinsx.com/word/time%20premium

MLA

“time premium.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/time%20premium. Accessed November 2, 2026.

Chicago

WatkinsX Dictionary, s.v. “time premium,” accessed November 2, 2026, https://dictionary.watkinsx.com/word/time%20premium.

Source: time premium on Wiktionary, CC BY-SA 4.0.