MarketXLS

Options Rho

Calculates Rho, which measures the sensitivity of an option's price to changes in the risk-free interest rate.

Parameters

Parameter Type Required Description
CurrentStockPrice number Yes Current underlying stock price
MarketOptionPrice number Yes Current option market price
ExpiryDate date Yes Option expiration date
OptionType string Yes "Call" or "Put"
StrikePrice number Yes Option strike price
RiskFreeRate number No Risk-free rate (default 0.05)
ImpliedVolatility number No IV as decimal

Interpretation

  • Call options have positive Rho (benefit from rising rates)
  • Put options have negative Rho (hurt by rising rates)
  • Rho is typically smaller for short-dated options

Syntax

=mxls.opt_Rho(CurrentStockPrice, MarketOptionPrice, ExpiryDate, OptionType, StrikePrice, [RiskFreeRate], [ImpliedVolatility])
Excel Online (Mac & Windows)

Parameters

currentStockPricenumberRequired

Current stock price

marketOptionPricenumberRequired

Current option market price

expiryDatedateRequired

Option expiration date

optionTypestringRequired

Call or Put

strikePricenumberRequired

Option strike price

riskFreeRatenumber

Risk-free interest rate as decimal

impliedVolatilitynumber

Implied volatility as decimal

Returns

number

Rho value (sensitivity to interest rates)

Examples

=mxls.opt_Rho(150, 5, DATE(2024,6,21), "Call", 155)
Call rho
=mxls.opt_Rho(150, 3, DATE(2024,6,21), "Put", 145)
Put rho
=mxls.opt_Rho(150, 5, DATE(2024,6,21), "Call", 155, 0.04)
With custom rate
=mxls.opt_Rho(150, 5, DATE(2024,6,21), "Call", 155, 0.04, 0.25)
With IV

When to Use

  • Analyzing interest rate exposure
  • Portfolio hedging for rate changes
  • Options pricing models
  • Risk management

When NOT to Use

Scenario Use Instead
Price sensitivity opt_Delta()
Delta sensitivity opt_Gamma()
Time decay opt_Theta()
Volatility sensitivity opt_Vega()

Common Issues & FAQ

Why is Rho smaller than other Greeks?

Rho measures sensitivity to a 1% change in rates, which typically has less impact than price or volatility changes.

When is Rho most important?

For longer-dated options and LEAPS where rate changes have more time to compound.

Excel Templates Using Options Rho

These ready-made MarketXLS templates call opt_Rho() in their worksheet formulas. Open one to see the function working inside a complete model.

Related Formulas

More MarketXLS Options formulas you can use in the same worksheet:

See opt_Rho used in a complete workbook: Options Greeks API MCP: One Live Greek Feed for Excel and Your AI Assistant (2026)

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MarketXLS Excel Add-in Tutorial - How to Use Options Rho and Other Financial Formulas
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