Options pricing models overprice out-of-the-money options, underprice in-the-money options.
The article explores different models for pricing options in the Indian market. They tested three models but found that none of them accurately priced options compared to the market price. The models tended to overprice out-of-the-money options and underprice in-the-money options. This suggests that the existing models may not fully capture the complexities of the market.