The Binomial Model is a mathematical framework used in finance to evaluate options and other derivatives. It simplifies the pricing process by assuming that the price of an underlying asset can move to one of two possible values in each time period, creating a tree-like structure of potential future prices. This model is particularly useful for American options, which can be exercised at any time before expiration. By calculating the possible outcomes at each node of the tree, traders can determine the fair value of the option, taking into account factors like volatility and time to expiration.