Monte Carlo Simulation Theory and Applications in Python

Andrea Chello
The Quant Journey
Published in
5 min readApr 23, 2022

Histogram of Monte Carlo Simulation Results

The Monte Carlo Simulation is a numerical analysis technique aimed at estimating the possible outcomes of a certain random event. It is a very powerful method of evaluating integrals where there are no known solutions.

The main idea behind this simulation is that the results are computed based on repeated random sampling and statistical analysis. The technique relies…