Your question is VaR for a Short Position. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
What is the VaR for a short position if you are long $1M in a stock with VaR = $100K?
Assume the short position has the same notional exposure and that VaR is reported as a positive loss magnitude. Explain how reversing the position changes the sign of potential P&L and whether it changes VaR. State any assumptions about linearity and symmetry.
