Natural logarithm: Difference between revisions

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1. ''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>''.


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

Revision as of 12:12, 28 November 2017

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