Options Greeks: Rho (Ρ)

This table outlines the typical values for rho in options trading. Key points:

• Positive rho values apply to call options: an increase in interest rates typically increases the option’s price.
• Negative rho values apply to put options: an increase in interest rates typically decreases the option’s price.
• The closer rho is to zero, the less sensitive the option is to changes in interest rates.
• Higher absolute values indicate greater sensitivity.