<table><tr><th>From:</th><th>Jeffrey Epstein &lt;jeevacation@gmail.com&gt;</th></tr><tr><td>Sent:</td><td>Sunday, January 12, 2014 8:56 PM</td></tr><tr><td>To:</td><td>Tazia Smith</td></tr><tr><td>Subject:</td><td>Re: PVDSA chart + USDJPY Trade (C]</td></tr></table>

do you think money good in 15

On Sun, Jan 12, 2014 at 4:38 PM,=Tazia Smith < <mailto > wrote:

Classification: Co=fidential

Jeffrey:

Please find the chart of PDVSA 5% =0/28/15 price history below, as well as a description of the USDJPY 10yr trade that we briefly discussed on Friday.

Speak with you soon,
Tazia

Used with permission of Bloombe=g Finance LP, 1/10/14

----- Forwarded =y Tazia Smith/db/dbcom on 01/12/2014 03:29 PM -----

From: Nav Gupta██████████████████████
To: Tazia Smith█████████████████████████
Date: 01/10/2014 08:21 AM
Subject: $Y [I]

Classification: For internal us= only

Long $Y Call Options. We like long expiry options to benefit from the prese=t dislocation between interest rates and volatility

Deutsche Bank FX Strategists are c=lling for USDJPY of 115 by year-end 2014, and 120 by year-end 2015. See DB FX Blueprint published 1/9/14, and note that #2 of the top 10 themes of 2014 (p. 5-6) revolves around extended weakness in the Japanese Yen vs. USD.

Consider a 10year expiry $Y call op=ion struck at 85 (spot fx 105, forward fx 77.70). Price 4.7% of USD notional

This option has four notable chara=teristics

	• If $Y stays at these levels the option decays positively by approx 15.20% per year

	• If $Y trades 90.00 at any tim= (arguably a scenario in which the option is no longer wanted) the option

"knocks=out" and becomes worthless. While $11might decline to 90, our quantitative analy=is indicates the probability of such a decline is significantly (double?) overpriced by the options market

• The premium of the option is =uite sensitive to moves in $Y spot - which is atypical for a 10year option. This also results from the knockout feature. This means if $Y moves quickly by 5% the option increases / decreases in value by almost half, so If SY rises to 110 or 115 the option can easily be unwound to monetize the profit

	• The option costs roughly 1/3r= compared to the vanilla 85 strike call

	• Maximum loss is premium paid<=font>

| Field | Extracted |
|---|---|
|Name|Present in signature — withheld (not transcribed) |
|Title|Director — Key Client Partners - US |
|Company / Division|Deutsche Bank Securities Inc; Deutsche Asset & Wealth Management |
|Address|345 Park Avenue, 26th Floor, New York, NY 10154 |
|Contact fields shown|Tel, Fax, Mobile, Email — values are redacted in the image |
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<=>

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