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Extrinsic Value

(Time Value) - The price of an option less its Intrinsic Value. Out of the Money (OTM) options are made up entirely of Extrinsic (or Time) Value.

Related Terms:

Intrinsic Value
This is a measure of any real value to the option. The amount by which an ...

Time value
The amount by which the current market price of an option exceeds its intrinsic value. The intrinsic ...

(decay) - The sensitivity of an option price to the variable of time to Expiration. Remember ...

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