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expectation value

   Also found in: Financial, Acronyms, Wikipedia, Hutchinson 0.03 sec.
expectation value [‚ek‚spek′tā·shən ‚val·yü]
(quantum mechanics)
The average of the results of a large number of measurements of a quantity made on a system in a given state; in case the measurement disturbs the state, the state is reprepared before each measurement.


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The taxable amount consists of the sum of: the intrinsic value of the options (the spread between the exercise price and the fair market value of the underlying shares) and the so-called expectation value of the stock option.
 
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