Risk Factor for Credit Spread

Carson

Schweser has this formula for Future value of Credit Spread Options and Forwards

FV=(spread at maturity-spread strike)*notional*Risk Factor


What is the term Risk Factor in this formula ? I mean what does it signify?

ll11

Never mind , it is some sort of duration term i.e. value change in option/forward for 1 bps basis change

pennyless

I don't know and don't really care at this point. If I see it I'm using it in the formula.

NO EXCUSES