Time value analysis
The fair value is the difference between the actual price of a warrant and its intrinsic value. It is always positive and also decreases as the remaining term decreases.
The time value analysis in the Infront Portfolio Manager provides you with a detailed evaluation of the time value loss. The evaluation shows the current price of the option in addition to the time value loss.
The details of the individual columns:
| Column | Description |
|---|---|
Name | The name of the option/warrant. |
MMWKN | The MMWKN of the option or warrant. |
Course | The course on the specified date. |
Currency | The price of the warrant is quoted in this currency. |
Loss of time value | The percentage time value loss is displayed here. The weekly change in the time value is displayed as a percentage of the option price. |
Fair price | The fair price according to the Black-Scholes model. |
Overvaluation | The percentage over- or undervaluation of the actual price compared to the fair price. |
Base volatility | The volatility of the underlying asset in percent (depending on the selected parameter setting, of course). |