"Option Pricing Models" provides an overview of two common methodologies for pricing options: the Black-Scholes model and the binomial pricing model. The Black-Scholes model is analytical and primarily used for pricing European options, while the binomial pricing model is computational and more suitable for pricing American options.

Key factors affecting option pricing are discussed, including volatility, time to expiration, and the impact of price determinants on option prices, which are represented by the option Greeks. Volatility, a measure of price change magnitude, influences option premiums. Time to expiration affects the probability of achieving the price target, with longer times generally leading to higher option premiums.

It also introduces the option Greeks: Delta, Gamma, Vega, Theta, and Rho. Understanding these option pricing models and Greeks is essential for assessing and managing risk in options trading, enabling investors to make informed decisions regarding their options positions.