Time value

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Revision as of 10:54, 7 October 2015 by imported>Doug Williamson (Expand stub. Source: ACT qualifications material.)
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  1. The component of an option’s total value which is related to the length of the unexpired maturity of the option, and which is additional to the Intrinsic value, if any. Time value represents the incremental profit that would be enjoyed if the option was sold, rather than being exercised or allowed to lapse.
  2. Time value of money.


See also

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