16.5 Advantages of vaR It captures an important aspect of risk in a single number It is easy to understand It asks the simple question: How bad can things get?” Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 16.5 Advantages of VaR • It captures an important aspect of risk in a single number • It is easy to understand • It asks the simple question: “How bad can things get?