The value of foreign exchange options is influenced by several factors, including:

Change in the value of the underlying (I):This directly affects the option's intrinsic value.

Change in the perception of future volatility (II):Higher expected volatility increases the option's potential payoff.

Change in interest rates (III):This affects the cost of carrying positions in the underlying asset.

Passage of time (IV):This influences the time value of the option. All these factors collectively impact the pricing dynamics of options throughout the trading day.