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How to calculate the time premium of options?
The time premium of options will not be negative. The time premium of option refers to the part where the option value exceeds the intrinsic value.

Time premium is the "fluctuating value" brought by time and the value generated by future uncertainty. The greater the uncertainty, the greater the time value of options.

Time premium = option value-intrinsic value

The intrinsic value of option refers to the economic value generated by the immediate execution of option.

Intrinsic value depends on the current market price of the underlying asset and the exercise price of the option.