What is the meaning of THEORETICAL VALUE?

THEORETICAL VALUE is an option's value generated by a mathematical model given certain prior assumptions about the term of the options contract, the characteristics of the underlying futures contract, and prevailing interest rates.

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APABarry Goldsmith. (2010). theoretical value. Retrieved September 25, 2026, from http://smartdefine.org/theoretical_value/definitions/1165132
ChicagoBarry Goldsmith. 2010. "theoretical value" http://smartdefine.org/theoretical_value/definitions/1165132 (accessed September 25, 2026).
HarvardBarry Goldsmith 2010, theoretical value, Smart Define, viewed 25 September, 2026, <http://smartdefine.org/theoretical_value/definitions/1165132>.
MLABarry Goldsmith. "theoretical value" 21 October 2010. Web. 25 September 2026. <http://smartdefine.org/theoretical_value/definitions/1165132>