What does Tv mean? What is the full form of Tv?

The full form of Tv is Time value.

It’s used on Technology ,General in Worldwide

The time value of money is the widely accepted conjecture that there is greater benefit to receiving a sum of money now rather than an identical sum later. It may be seen as an implication of the later-developed concept of time preference.

The time value of money is the reason why interest is paid or earned: interest, whether it is on a bank deposit or debt, compensates the depositor or lender for the time value of money. Hence, It also underlies investment. Investors are willing to forgo spending their money now only if they expect a favorable return on their investment in the future, such that the increased value to be available later is sufficiently high to offset the preference to spending money now; see required rate of return.

In options trading, time value refers to the portion of an option’s premium that is attributable to the amount of time remaining until the expiration of the option contract. The premium of any option consists of two components: its intrinsic value and its time value. The total premium of an option is equal to the intrinsic value plus the option’s time value.

The price (or cost) of an option is an amount of money known as the premium. An option buyer pays this premium to an option seller in exchange for the right granted by the option: the choice to exercise the option to buy or sell an asset or to allow it to expire worthless.

The intrinsic value is the difference between the price of the underlying asset (for example, the stock or commodity or whatever the option is being taken out on) and the strike price of the option. The intrinsic value for a call option (the right but not the obligation to buy an asset) is equal to the underlying price minus the strike price; the intrinsic value for a put option (the right to sell an asset) is equal to the strike price minus the underlying price. So, an option’s time value is equal to its premium (the cost of the option) minus its intrinsic value (the difference between the strike price and the price of the underlying asset).

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