Edit in JSFiddle

<h3>Products</h3>

<ul data-bind="foreach: products">
    <li>
        <strong data-bind="text: name"></strong>
        <button class="remove-item">Remove</button>
    </li>
</ul>

function appViewModel() {
    this.products = ko.observableArray([
        { name: "XBox" },
        { name: "PlayStation" },
        { name: "Banana" },
        { name: "Wii" }
    ]);
};

var myViewModel = new appViewModel();
ko.applyBindings(myViewModel);

$(".remove-item").live("click", function() {
    myViewModel.products.remove(ko.dataFor(this));
});