On June 1, Hamilton Corporation purchased goods from a foreign supplier at a price of 1,000,000 markkas. It will make payment in three months on September 1. On June 1, Hamilton acquired an option to purchase 1,000,000 markkas in three months at a strike price of $0.085. Relevant exchange rates and option premiums for the markka are as follows:

Date	Spot Rate	Call Option Premium for 9-1(strik price $0.085)
June 1	0.085	0.002
June 30	0.088	0.004
Sept. 1	0.090	N/A

Hamilton must close its books and prepare its second quarter financial statements on June 30.

Assuming that Hamilton designates the foreign currency option as a cash flow hedge of a foreign currency payable, prepare journal entries for these transactions in US Dollars. What is the impact on net income over the two accounting periods?

This problem comes from the book with the ISBN: 9780077862237. It is number 34. There are solutions, but I don't understand the part where you make a table showing the fair value, intrinsic value, time value, and change in time value. I can't figure out how to get these numbers. Any help would be appreciated.