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Erosion is the:
Intrinsic Value
The inherent worth of a company, stock, or security, based on fundamental analysis without reference to its market value.
At-the-money
A term used in options trading to describe an option whose strike price is identical to the current price of the underlying asset.
Put Option
A financial contract giving the buyer the right, but not the obligation, to sell a particular asset at an agreed-upon price within a specified time.
Time Value
Time Value is a concept in finance that represents the additional value of an investment due to the potential earnings from the passage of time, often associated with the time value of money theory.
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