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Black-Scholes Model

This topic has 1 reply, 2 voices, and was last updated 13 years ago by John Moffat.

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November 29, 2010 at 1:12 pm #46357
camille
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What is meant by the natural log used in the formula for the Black-Scholes model?
November 29, 2010 at 2:37 pm #71988
John Moffat
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It is log to the base e (normal logs are to the base 10).
You will not be asked what it means, but you do need a calculator with an ‘ln’ button on it.
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