Natural logarithm: Difference between revisions
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imported>Doug Williamson (Update.) |
imported>Doug Williamson (Standardise headings.) |
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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>. | ||
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2. ''Maths'' | 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. | 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 12:11, 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.
