Natural logarithm: Difference between revisions
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== 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.