The article discusses different methods for pricing index options, focusing on the Black-Scholes-Merton formula. This formula assumes stock prices follow a specific pattern and allows for pricing options without considering certain factors. The research aims to determine the price of nifty index options using various valuation techniques. The key finding is that the risk-neutral approach to option pricing, as proposed by Black, Scholes, and Merton, has revolutionized how options are priced in modern finance.