An exotic option (specifically a single-payout option) that makes payments based on the logarithm of the price of its underlying asset. In other words, it represents a contingent payout whose value at expiration is equal to the natural logarithm of the underlying asset’s price. That means, the payoff of the log contract option is a nonlinear function of the price of a single asset. This type of options enables investors to trade views on future volatility. It always remains at the money.