# Mapping Futures/Forward Positions to Risk Factors

We have learned about how various complex positions can be broken down into elementary blocks which can be further mapped to risk factors. The four such elementary blocks/instruments are Spot FX positions, Equity Positions, Zero-coupon bonds, and Future/Forward positions.

At 99% confidence level, a portfolio with 10 futures contracts each valuing $10,000, and a standard deviation of 20%. will have a VaR of. VaR = -2.33*0.20 * 10 * 10000 = -$46,600