This chapter moves beyond analytical pricing formulas like the Black–Scholes model and explores how to price European options using Monte Carlo simulation. Monte Carlo methods are powerful numerical techniques widely used in finance when closed-form solutions are difficult or impossible to obtain. They rely on simulating a large number of possible paths for the underlying asset price and then estimating option payoffs statistically. This chapter is a bridge between theory (closed-form Black–Scholes) and practice (numerical methods for complex derivatives). After working through it, you’ll have both the coding skills and quantitative intuition to tackle more advanced derivatives (Asian, barrier, and American options) using Monte Carlo methods.