Either currency can be expressed in terms of the other. Intrinsic value is simply the difference between the spot price and the strike price. A put option will have intrinsic value only when the spot price is below the strike price. A call option will have intrinsic value only when the spot price is above the strike price. The .08 of additional premium is considered time value.
Time value is more complex.
When the price of a call or put option is greater than its intrinsic value, it is because it has time value. Time value falls toward zero as the expiration date approaches. Another commonly used model for currency option valuation is the Garmen-Kohlhagen model. There are many texts available which cover the specifics of option pricing models in detail. These prices result from the interaction of buyers and sellers through the auction market conducted on the trading floor of the Exchange.