Example sentences of "time value " in BNC.

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1 Second , ROCE measures are single period and take no account of the time value of money .
2 The payback period is a simple concept which , though dealing with cash flows , is principally flawed by the fact that it too disregards the time value of money .
3 Thus , the value of the firm is equal to the total value of its expected future stream of cash flows , discounted to take account of the ‘ time value of money ’ ( ’ a pound tomorrow is worth less than a pound today ’ ) and risk .
4 So you actually build a time value into the contribution of nursing .
5 It recognises that money has a time value by discounting future cash flows at an appropriate discount rate .
6 Hence , time value is the price paid for the chance that the share price will move sufficiently during the following 5 weeks in order to make the investment profitable .
7 The time value components of the option premiums quoted get larger as the time to expiry lengthens .
8 However , it should be noted that the relationship between time value and the term to maturity is neither linear nor is it the same for both types of contracts .
9 Thus in the above example , investors are willing to pay slightly more in terms of time value for calls than for puts but the difference is so slight that the indicator is in this case quite inconclusive .
10 The determinants of the time value component are primarily the volatility of the underlying shares and the prevailing and expected interest rates in the money markets .
11 So the greater the volatility of the underlying share , the greater the time value for any given term to maturity is likely to be .
12 The objectives of these various strategies is most clearly illustrated by the use of profit diagrams which show profit or loss at expiry ( when all time value disappears ) in relation to the price of the underlying share price .
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