Economy, asked by Krutika5325, 11 hours ago

Which is the ratio of change in option premium for the unit change in interest rates?

Answers

Answered by ITSMEMILESCHILL
0
Rho measures the change in premiums due to the 1% change in prevailing risk free interest rate.Thus, a rho of 0.05 means that the theoretical value of put premiums will decrease by 5% because but premiums move opposite to interest rates.
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