The part of a premium that arithmetic alone accounts for: what the contract would be worth if it ended right now. It is never negative, because nobody is obliged to exercise, so an out-of-the-money contract has none at all and its whole price is time value.
Mayawhat these words mean
Maya reads the desk’s written explainers and the glossary. She holds no market data at all, so she can say what a thing is and cannot say what it is doing today.