rho Hear it!

rho definition - finance
A measurement of the change in the premium of an option, or its sales price, in relation to a percentage-point change in the interest rate. Rho measures the sensitivity of the optionÂ’s value to interest rates.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments


Do you have more to add? Sign in to share your linguistic knowledge or observation.

Connect with Facebook