What Is the Term for the Intrinsic Value of an Option?

The intrinsic value of an option is the profit that could be realized if the option were exercised immediately. It is the difference between the underlying asset's price and the option's strike price, but only if the option is "in-the-money." If the option is "at-the-money" or "out-of-the-money," its intrinsic value is zero.

The option premium is the sum of intrinsic value and time (extrinsic) value.