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In this video, we will calculate the future or forward contract price for securities providing a fixed amount of income. The pricing principle of forward and future is explained, with the formula f naught = F naught - I * e^(RT) for securities providing a given amount of income. The first step involves securities providing no income, while the second step is for securities providing a fixed amount of income. The formula f naught = s naught * e^(RT) is used for the first step, with the only difference for the second step being the deduction of I, the present value of income, from the spot price to find the future or forward price.