Extrinsic Value
The difference between an option's price and the intrinsic value.

Investopedia Says:
For example, an option that has a premium price of $10 and an intrinsic value of $5 would
have an extrinsic value of $5. Denoting the amount by which the option's price is greater than the intrinsic value, the extrinsic value of the option declines as its expiration date draws closer.

Related Terms:
Intrinsic Value
Option
Out of the Money
Premium

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