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hello this is David Harper a banach turtle with a continuation in the series of short screencasts devoted to value at risk mapping for my frm candidate customers were following Phillip jorian because its the assigned text and this is a snippet from table 11 6 because previously weve established some of the theory about var mapping and now Jorian helpfully goes to illustrate how var mapping works with different kinds of financial instruments and so we start here with the mapping of a forward contract which is a linear derivative and if it seems confusing at first just remember our end game here we want to take the forward contract and identify the risk factors that is what are the things in the market that change that if they change impact the value of our forward contract thats the essence of var mapping we take the portfolio identify the risk factors and then map to the risk factors so heres the example in this case its a 1-year forward contract to purchase 100 million euros in e