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What Is the Term for the Difference between the Option Price and Its Intrinsic Value?

The difference is the time value (extrinsic value).
Greeks.Live22.11.25

What Is the Term for the Difference between the Option Price and Its Intrinsic Value?

The term for the difference between the option price (premium) and its intrinsic value is the time value, or extrinsic value. This value is attributable to the remaining time until expiration and the implied volatility.

How Does an option’S’premium’ Relate to Its Intrinsic and Extrinsic Value?
Define “Intrinsic Value” and “Extrinsic Value” of an Option
How Does the Premium Relate to the Intrinsic and Extrinsic Value of an Option?
What Is the Difference between Intrinsic Value and Extrinsic (Time) Value of an Option?

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