Suppose some futures market has a notional $1 million deposited for 1 year as an underlying asset. Further suppose that the tick size is .01 and the tick value is $100.

1. How would you expect the contract price to be quoted? (1 point)
2. Why do you think the tick size and value were chosen to be those values? (2 point)
3. Give an example of how a company could use this market to hedge against an interest rate decrease.