Natural logarithm: Difference between revisions
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''Options analysis'' | 1. ''Options analysis'' | ||
The natural logarithm ln(x) is the logarithm to the base ‘e’, and mathematically the inverse function of the exponential function e<sup>x</sup>. | The natural logarithm ln(x) is the logarithm to the base ‘e’, and mathematically the inverse function of the exponential function e<sup>x</sup>. | ||
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(Not to be confused with Lognormal, which is different.) | (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. | |||
Revision as of 07:58, 13 December 2016
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.
