EQUITY DERIVATIVES Equities Are from Mars and Derivatives from Venus

Be a cause of the future and not a result from the past. Futures expectations in financial markets are paramount for today’s decision-making processes. Although many indicators have been developed in recent years to gauge investors’ expectations, most only give a narrow view of the situation, signalling just bullish or bearish sentiment. In this report, we go beyond those measures and aim to identify the exact probabilities players attach to each possible future price of a specific asset. Hence, commanding this set of probabilities, we should be in a better position to control present investment decisions.