The conversation between human and AI assistant.
Why is the Monte Carlo simulation used for the option pricing if the goal is to get close to the price generated by the Black-Scholes model?
So, the Black-Scholes model is not completely accurate?
The Black-Scholes model assumes that the underlying asset's price follows a normal distribution, but that is not always the case in real life. The Monte Carlo simulation can handle more complex price distributions and consider a wider range of possible outcomes.