Based on the information given the call option's intrinsic is $5.00, and time values is $1.50.
a. Intrinsic value
Using this formula
Intrinsic value=Stock selling price-Strike price
Let plug in the formula
Intrinsic value=($55-$50)
Intrinsic value=$5.00
b. Time values
Using this formula
Time values=Stock Cost price-Intrinsic value
Let plug in the formula
Time values=$6.50-$5.00
Time values=$1.50
Inconclusion the call option's intrinsic is $5.00, and time values is $1.50.
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