= Monte Carlo methods in finance
{wiki=Monte_Carlo_methods_in_finance}
Monte Carlo methods are a class of computational algorithms that rely on repeated random sampling to obtain numerical results. In finance, these methods are widely used for various purposes, including: 1. **Option Pricing**: Monte Carlo simulations can be used to estimate the value of complex financial derivatives, such as options, especially when there are multiple sources of uncertainty (e.g., multiple underlying assets, exotic options).
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