The 17th letter of the Greek alphabet.
[Greek rhō, of Phoenician origin.]
Dictionary:
rho (rō) ![]() |
[Greek rhō, of Phoenician origin.]
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| Statistics Dictionary: rho |
| Investment Dictionary: Rho |
The rate at which the price of a derivative changes relative to a change in the risk-free rate of interest. Rho measures the sensitivity of an option or options portfolio to a change in interest rate.
Investopedia Says:
For example, if an option or options portfolio has a rho of 12.124, then for every percentage-point increase in interest rates, the value of the option increases 12.124%.
Related Links:
We examine various ways in which companies use derivatives to manage risk. Corporate Use Of Derivatives For Hedging
Understand the various factors that influence them so you can learn to anticipate their movements for profit. Trying To Predict Interest Rates
Learn how analyzing these variables are crucial to knowing when to exercise early. Dividends, Interest Rates and Their Effect on Stock Options
| Wikipedia: Rho |
Rho may refer to:
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![]() | Dictionary. The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2007, 2000 by Houghton Mifflin Company. Updated in 2009. Published by Houghton Mifflin Company. All rights reserved. Read more | |
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