# Intrinsic Value

*Derivatives & Options — Finicade finance glossary*

The part of an option's price you'd pocket if you exercised it right now — how far in-the-money it is. Everything above that is time value, which decays away as expiry nears.

**Related terms:** [Option Premium](https://finicade.com/glossary/premium), [Time Value](https://finicade.com/glossary/time-value), [Moneyness](https://finicade.com/glossary/moneyness)

Source: https://finicade.com/glossary/intrinsic-value