# Rho

*Derivatives & Options — Finicade finance glossary*

How much an option's price responds to a change in interest rates. It's the quietest Greek for short-dated options, but it matters for long maturities where the cost of carrying the position adds up.

**Related terms:** [The Greeks](https://finicade.com/glossary/the-greeks), [Interest Rate](https://finicade.com/glossary/interest-rate)

**Taught in:** Hull Street — The Greeks, in Full

Source: https://finicade.com/glossary/rho