Explore option pricing methodologies in this 51-minute conference talk from the Peter Carr Memorial Conference at New York University. Delve into both bottom-up and top-down approaches, examining the classic derivative pricing method and its drawbacks. Discover time-changed Levy processes, top-down value representation, and P&L attribution. Learn about applying no dynamic arbitrage conditions, common market pricing on separate risk estimates, and linear cross-sectional option pricing models. Analyze average implied volatility surface variation, mean absolute pricing errors, and statistical arbitrage trading strategies. Gain insights into market pricing estimates and risk portfolio returns in this comprehensive exploration of option pricing techniques.