Intrinsic value

What an option would be worth if expiry were now. Everything above that is time value.

Where this comes up

Lessons that use the term in context, which is usually more useful than the definition on its own.

What you are paying for — Intrinsic and time value, separated properly.
Theta and the shape of decay — Why the last week behaves nothing like the first.
Expiry day mechanics — Settlement, exercise and what actually happens at the close.