correct, i think i am not clear about the whole concept behind a future like this, so future price, we are calculating the arbitrage free settlement price, not the value of future right?

oh, i think i just got clear, this section is hard for me i basically skipped it for level I and got the only C i had in this, oops, in level ii i decide to slow down and go through each concept till i am clear, well its been a drilling experience

The short answer is that you can subtract the present value of the cash flows from the spot price, then increase that by the risk-free rate, or you can increase the spot price by the risk-free rate, then subtract the future value of the cash flows. They’re equivalent, because the future value of the cash flows is the present value of the cash flows increased by the risk-free rate.