Business and Personal Finance Dictionary

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• TIME VALUE OR EXTRINSIC VALUE
  
  The amount that the current market price of a right, warrant or option exceeds its intrinsic value. Intrinsic value is the amount by which the market price of a security exceeds the price at which the warrant, right or option may be exercised. The intrinsic value of a put is calculated as the amount by which the market price of the underlying security is below the exercise price.
  
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