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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Time Value


See intrinsic value. All options have two components of value. Intrinsic value is how much you'd make if you exercised the option right now - intrinsic value can range from 0 to infinity. Time value is just the difference between the current price for that option and its intrinsic value.