# Futures Formula

## How Futures Price Determined

The theoretical formula for calculating the futures price from the spot price is as follows:

$$
Futures Price=Spot price\
∗
(1+r
f
​
−d)
$$

where, rf = risk-free rate on an annual basis, and d = dividend

$$
Bitcoin Futures Price
\=Bitcoin Spot price
∗
\[1+r
f
∗
​
(
365
x
​
)]
​
$$

where x = number of days to expiry