Time to maturity
Time to maturity, also known as time to expiration, is the length of time remaining until the expiration date of a financial instrument such as an option or bond. It is an important consideration for investors and traders, as the time to maturity can have a significant impact on the value and price movements of the instrument. Generally, the longer the time to maturity, the higher the value of the instrument, all else being equal. This is because the longer the time until expiration, the more time the instrument has to potentially generate a return for the holder.