Day 5. Rising interest rates are bearish for everything, except for options!
@Tiger_Academy:
HelloWe are aware that recently, US Treasury yields have been continuously rising, causing the prices of many financial assets to decline, such as stocks, bonds, funds, and non-US dollar exchange rates. However, the one asset class that is relatively less affected by this rise is options. In fact, to some extent, the increase in US Treasury yields has stimulated the increase in option prices. But why is this the case? What is the relationship between interest rates and option prices?To understand this logic, let's first take a look at what Rho is for options."Special commend: How to achieve an 8%* annualized yield on your Tiger Vault Fund?1. Understanding the Rho Value of OptionsRho value is a metric used to measure the