What is the meaning of Time premium?

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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APABarry Goldsmith. (2010). time premium. Retrieved September 21, 2026, from http://smartdefine.org/time_premium/definitions/1165226
ChicagoBarry Goldsmith. 2010. "time premium" http://smartdefine.org/time_premium/definitions/1165226 (accessed September 21, 2026).
HarvardBarry Goldsmith 2010, time premium, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/time_premium/definitions/1165226>.
MLABarry Goldsmith. "time premium" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/time_premium/definitions/1165226>