What is the meaning of Time Value?

Has two general meanings. The first is the value or amount of a sum of money adjusted by an interest rate for a given time period. The second common usage is in the context of options. Here, it defines the amount of premium attributed to the remaining term of the option after factoring out any in-the-money component. Is multiplicative factor which is dependent on the time remaining to expiration and the attendant volatility. However,' Time Value' is not proportional but tends to more nearly approximate a square root function.

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APABarry Goldsmith. (2010). time value. Retrieved September 20, 2026, from http://smartdefine.org/time_value/definitions/1165236
ChicagoBarry Goldsmith. 2010. "time value" http://smartdefine.org/time_value/definitions/1165236 (accessed September 20, 2026).
HarvardBarry Goldsmith 2010, time value, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/time_value/definitions/1165236>.
MLABarry Goldsmith. "time value" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/time_value/definitions/1165236>
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