Words / R / Business

rho

noun/rəʊ/

C2CEFR level
90/100Rarity: very rare
TechnicalRegister

The sensitivity of an option's price to a change in interest rates.

Rho matters little for short-dated equity options but becomes significant for long-dated contracts.

Topic: Finance in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Finance