<P> Thus, assuming constant rates, for a simple, non-dividend paying asset, the value of the futures / forward price, F (t, T), will be found by compounding the present value S (t) at time t to maturity T by the rate of risk - free return r . </P> <Dl> <Dd> F (t, T) = S (t) × (1 + r) (T − t) (\ displaystyle F (t, T) = S (t) \ times (1 + r) ^ ((T-t))) </Dd> </Dl> <Dd> F (t, T) = S (t) × (1 + r) (T − t) (\ displaystyle F (t, T) = S (t) \ times (1 + r) ^ ((T-t))) </Dd> <P> or, with continuous compounding </P>

To minimize default risk futures exchanges require all contracts to be