time value premium

noun

The amount by which the total premium of an option exceeds its intrinsic value.

Ask AI about this wordChatGPTClaudePerplexityGoogle AIGrok

Meanings

nountime value premium (plural time value premiums)

plural time value premiums

  1. businessThe amount by which the total premium of an option exceeds its intrinsic value.
Cite this entry
APA

time value premium. (n.d.). In WatkinsX Dictionary. Retrieved November 4, 2026, from https://dictionary.watkinsx.com/word/time%20value%20premium

MLA

“time value premium.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/time%20value%20premium. Accessed November 4, 2026.

Chicago

WatkinsX Dictionary, s.v. “time value premium,” accessed November 4, 2026, https://dictionary.watkinsx.com/word/time%20value%20premium.

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