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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

time premium  

Definition 1.

The amount by which an option's premium exceeds its intrinsic value. also called time value.
 

Definition 2.

Also called time value, the amount by which an option price exceeds its intrinsic value. The value of an option beyond its current exercise value representing the optionholder's control until expiration, the risk of the underlying asset, and the riskless return.
 
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