Natural logarithm: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson
(Classify page.)
imported>Doug Williamson
(Add link.)
 
(One intermediate revision by the same user not shown)
Line 21: Line 21:


== See also ==
== See also ==
* [[Exponential]]
* [[Exponential]]
* [[Exponential constant]]  (e)
* [[Exponential function]]
* [[Exponential function]]
* [[Logarithm]]
* [[Logarithm]]
* [[Lognormal]]
* [[Lognormal]]
* [[Napierian logarithm]]
* [[Napierian logarithm]]
* [[Natural]]
* [[Volatility]]
* [[Volatility]]


[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Financial_products_and_markets]]
[[Category:Financial_products_and_markets]]

Latest revision as of 20:38, 24 March 2023

1. Options analysis.

The natural logarithm ln(x) is the logarithm to the base ‘e’, and mathematically the inverse function of the exponential function ex.

So for example ln(100) = 4.60517...

And e4.60517... = 100


Also known for short as the 'natural log'.

Also sometimes known - loosely - as the 'Napierian logarithm'.

(Not to be confused with Lognormal, which is different.)


2. Maths.

The natural log - as used in options analysis above - is exactly the same as the concept used more broadly in maths and financial maths applications.


See also