The article tests if the Black-Scholes call option pricing model can accurately value S&P 100 index call options. The model was originally developed for stock options but has not been extensively studied for index options. The researchers aim to see if this model can be applied to the new and volatile financial markets of the 1980s. They find that the Black-Scholes model, created in the 1970s, may still be relevant and useful for valuing index options despite the significant growth in option trading since its inception.