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my previous video explained what is the dollar value of a 0 1 also known as a price value a basis point and because Im following the sequence in Bruce Tuckman chapter for this video goes to the next step and looks at how we would apply this and the situation is a market maker who has written call options at the clients request and then wants to hedge that exposure with futures contracts and shes going to use the price value of basis point to size the position of the hedge in this case to determine how much futures contract should I purchase to neutralize my interest rate exposure at least from this single risk factor perspective so well show you how we do that the formula the Tuchman uses what it means and along the way Im going to mention a key point that we know is a stumbling block for new learners and thats the following that if we see dv01 like this that would be pretty plausible because it usually be a few cents you can see or point zero three five dollars or three and a hal