MSc Finance differentiation

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dannyshiers
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#1
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#1
I'm a one year MSc Finance student and need some mathematical help:

I need some help with one step of this differentiation calculation. It is the ln(1-p).

I understand that the log of x is just 1/x so that is where the 1/1-p comes from. But what I don’t understand is where is the -1 comes from.
I know you do 2 diff calculations with things inside the bracket and then outside the bracket but I’m stuck with what rule to apply to get the (-1) in the below equation.

I also understand and can calculate the rest of the equation so it’s just the -1 i need some help with.

Any help would be much appreciated. Thanks 👍

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simon0
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#2
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#2
One way to treat this is a function within a function:

 \displaystyle f(p) \, = \, \mathrm{ln} ( g(p) ).

If: g(p) = 1-p , g'(p) = ?

Can you see where the -1 comes from?
Last edited by simon0; 1 month ago
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econhelp525
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#3
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#3
Use the chain rule.
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dannyshiers
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#4
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#4
Thanks both, it makes sense now.
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