[roh] 
| 1. | the 17th letter of the Greek alphabet (P, ρ). |
| 2. | the consonant sound represented by this letter. |
| rho (rō) n. The 17th letter of the Greek alphabet. See Table at alphabet. [Greek rhō, of Phoenician origin; see r  š in Semitic roots.] |
Rho
The rate at which the price of a derivative changes relative to a change in the risk-free rate of interest. Rho measures the sensitivity of an option or options portfolio to a change in interest rate.
Investopedia Commentary
For example, if an option or options portfolio has a rho of 12.124, then for every percentage-point increase in interest rates, the value of the option increases 12.124%.
Related Links
Corporate Use of Derivatives for Hedging
Trying To Predict Interest Rates
Dividends, Interest Rates and Their Effect on Stock Options
See also: Delta, Derivative, Gamma, Greeks, Interest Rate, Option, Vega
Also spelled: Rhoe, Rhow
rho n.
Symbol ρ The 17th letter of the Greek alphabet.