Homonym: rho (Density)
Rho is a letter in the Greek alphabet, represented as "ρ" in lowercase and "Ρ" in uppercase. It is the 17th letter and is often used in various fields, including mathematics and physics, to denote specific variables or constants.
In finance, rho refers to a measure of how much the price of an option is expected to change when there is a change in interest rates. It helps traders understand the sensitivity of an option's price to interest rate fluctuations, which can impact investment strategies.