Suppose the British pound is at $$1\mathrm{.}30.$ A $6-$month calloption with a strike price of $$1\mathrm{.}25$ has a price of $$0\mathrm{.}07($per GBP$).$ What are the intrinsic and time values? Intrinsic value: max$(1\mathrm{.}301\mathrm{.}25,0)=$ $$0\mathrm{.}05$ Time value: $$0\mathrm{.}02$