Investment behavior, techniques and choices have evolved in the options markets since the launch of options trading in 1973. Today, we are entering the field of Big Data and the explosion of information, which has become the main feature of science, impacts investors' decisions and their trading position, particularly in the financial markets. My thesis aims to testing the effectiveness of the most popular options pricing models, which are the Monte Carlo simulation method and the Binomial Tree Model. In quantitative analysis, the Monte Carlo Simulation (MCS) and Binomial Tree Model (BTM) approaches are widely used. Both have gotten a lot of coverage because of how easy they are used for complicated financial issues. These are useful tools for valuing dynamic financial derivatives. For MCS and BTM modeling, we use Matlab and MS Excel to predict the comparative result for the price of options. However, Option pricing has not yet been implemented in Pakistan, but it is highly likely to be implemented eventually. Our key aim is to introduce MCS and BTM on the Pakistan Stock Exchange to see comparatively how successful they are in (PSX).