Options pricing refers to the method used to determine the value of an option, which is a financial contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price before a certain date. The price of an option is influenced by several factors, including the current price of the underlying asset, the strike price, the time until expiration, and market volatility. One common model used for options pricing is the Black-Scholes model, which calculates the theoretical value of options based on these factors. Understanding options pricing is essential for traders and investors, as it helps them make informed decisions about buying or selling options in the financial markets.