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Rho

Rho (ρ) – Measures Interest Rate Sensitivity

February 21, 2025 by webmaster@emaster.in
Rho measures how much an option’s price changes when interest rates rise by 1%. Call options have positive Rho, meaning they increase in value when interest rates rise, while put options have negative Rho, meaning they lose value when interest rates rise. Rho is more relevant for long-term options (LEAPS) and has minimal impact on ... Read more
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