# Time Value

*Derivatives & Options — Finicade finance glossary*

The slice of an option's premium beyond its intrinsic value — what you pay for the chance the price moves further your way before expiry. It bleeds away as time runs out, fastest in the final weeks.

**Also known as:** extrinsic value

**Related terms:** [Intrinsic Value](https://finicade.com/glossary/intrinsic-value), [Option Premium](https://finicade.com/glossary/premium), [Theta](https://finicade.com/glossary/theta)

**Taught in:** Charter Climb — Base Camp Exam

Source: https://finicade.com/glossary/time-value