Delta (Rho)

Delta (Rho) measures how much the price of an option changes when interest rates change. Specifically, it estimates the dollar amount an option's value will increase or decrease if interest rates go up or down by one percentage point. This helps traders understand the sensitivity of options to interest rate movements, which can impact option pricing especially for long-term options or those with variable rates. Rho is a key factor in assessing risk and making informed investment decisions related to interest rate fluctuations.