Rho
In options trading, “rho” (ρ) is one of the Greek letters used to represent the sensitivity of an option’s price to changes in the risk-free interest rate. Rho measures the impact of changes in interest rates on the value of an option, assuming all other factors remain constant.
Related Terms
- Protective Put
- Exotic Options
- Delta Neutral
- Moneyness
- Extrinsic Value
- Cash Secured Put
- Naked Put
- Call Options
- American Options
- Debit Spread
- Open interest
- Short Call
- Put Option
- Premium
- Out of the money
- Protective Put
- Exotic Options
- Delta Neutral
- Moneyness
- Extrinsic Value
- Cash Secured Put
- Naked Put
- Call Options
- American Options
- Debit Spread
- Open interest
- Short Call
- Put Option
- Premium
- Out of the money
- Option Chain
- Long Put
- Long Call
- In the money
- Implied volatility
- Bull Put Spread
- Gamma
- Expiration date
- Exercise
- European Option
- Delta
- Covered Put
- Covered Call
- Call Option
- Bear Put Spread
- Bear Call Spread
- American Option
- Strangle
- Short Put
- Vega
- Underlying
- Time Value
- Time Decay
- Theta
- Strike Price
- Straddle
- Intrinsic Value
Most Popular Terms
Other Terms
- Perpetual Bond
- Option Adjusted Spread (OAS)
- Non-Diversifiable Risk
- Merger Arbitrage
- Liability-Driven Investment (LDI)
- Income Bonds
- Guaranteed Investment Contract (GIC)
- Flash Crash
- Equity Carve-Outs
- Cost of Equity
- Cost Basis
- Deferred Annuity
- Cash-on-Cash Return
- Earning Surprise
- Capital Adequacy Ratio (CAR)
- Bubble
- Beta Risk
- Bear Spread
- Asset Play
- Accrued Market Discount
- Ladder Strategy
- Junk Status
- Intrinsic Value of Stock
- Interest-Only Bonds (IO)
- Interest Coverage Ratio
- Inflation Hedge
- Industry Groups
- Incremental Yield
- Industrial Bonds
- Income Statement
- Holding Period Return
- Historical Volatility (HV)
- Hedge Effectiveness
- Flat Yield Curve
- Fallen Angel
- Execution Risk
- Exchange-Traded Notes
- Event-Driven Strategy
- Eurodollar Bonds
- Enhanced Index Fund
- Embedded Options
- EBITDA Margin
- Dynamic Asset Allocation
- Dual-Currency Bond
- Downside Capture Ratio
- Dollar Rolls
- Dividend Declaration Date
- Dividend Capture Strategy
- Distribution Yield
- Depositary Receipts
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