Time value the rest of the premium; the bet on further movement, which decays to zero by expiration. Where it's taught Options: Calls, Puts, and the Hockey-Stick Payoff Try it with a calculator Options Calculator Appears in 4 other lessons Compound Interest & the Time Value of MoneyPresent Value: Should You Take the Lump Sum or the Payments?Paying for College: 529 Savings vs the Cost of Student DebtTax-Loss Harvesting: Turning a Loser Into a Tax Break Related terms Break-evenCall / putIn / out of the moneyIntrinsic valueLong / shortPremiumStrikeWriting (selling) an option