Rho

Rho is a measure used in finance to show how much a stock or investment's value changes when interest rates change. Specifically, it indicates the expected change in the price of an option if interest rates go up or down by a small amount. A higher Rho means the option's value is more sensitive to interest rate changes. This helps investors understand how shifts in economic conditions, like interest rate adjustments by central banks, might impact their investment's worth. Rho is particularly important for options traders who want to manage risks related to interest rate fluctuations.