| • Is the element which quantifies investment horizons, time remaining to maturity, time remaining to expiration, or time of holding period. It measures the distance between chronological points. Its definition can be complex even when determining the remaining period for an option until its expiration. This is because some practitioners use only business days, others use calendar days, still others base their years on 252, 253, 360, 365 or 366 days (leap years). Also, for modeling purposes some analysts view time discretely while others view it continuously. At the simplest level, this is evident between the difference of simple interest calculations and continuous compounding interest calculations. |