Irrational Numbers
In some of your calculations it is possible that you will need to use various irrational numbers. Assigning values in the name of e and phi is problematic, as there are stocks that use those symbols. Thus here we show you how to create those values, should you wish to construct macros to do so:
pi: 2 * arcsin 1
e: exp 1
phi: (1 + sqrt 5)/2
“pi” is used in various trigonometric functions.
“e” can be used to continuously compound a nominal interest rate, which is necessary in various options calculations.
“phi” is the value to which Fibonacci ratios converge. Although Fibonacci numbers are digital (1, 1, 2, 3, 5, 8, 13, 21, 34, …), the Fibonacci Ratio is the rate of change of each number to the prior one. As you keep extending the series, the ratio converges to “phi”. This value is also known as the “golden mean” of Classical Greece.