The article compares two ways to value options on the KOSPI 200 index. One method uses direct option pricing models, while the other uses implied pricing kernels from these models. The study found that the direct model-based approach is better at estimating parameters from underlying returns. However, the implied pricing kernel-based approach is more accurate for pricing out-of-the-money options. In contrast, the direct model-based approach performs better for in-the-money options. Overall, the Black-Scholes model is more reliable than the GARCH model for option valuation and hedging.