Using theoretical volatility in the valuation of FX-Options

[nidu]

Hi,
I'm trying to understand how my company valuate its FX-options. They are not using the historical, nor the implied volatility. Instead they are using something called the theoretical volatility with some stochastical input. Could anyone please give me an example on how this normally is done or give me a link to an illustrative example? How is the theoretical volatility in an FX-option estimated and plotted?

Thanks
Nicholas

 

[senor]

Hi Nicolas

Did you mean forex options, if yes can u pls let me know which broker u trade options with in india/mumbai.Am seriously looking out for any forex broker who could provide me options trading feature

Thanks in Advance