Night.win
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    • Options Primer
      • Terminology
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      • Long Call
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      • Delta
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  1. Intro to Options
  2. The Greeks Explained

Rho

Rho is the rate at which the price of an option changes relative to the risk-free interest rate. Imagine a call option is priced at $100 and has a rho of 0.50. If the risk free interest rate was to increase from 0 to 1%, then the price of the call would increase to $100.50

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Last updated 2 years ago