From: Tazia Smith a> To: "Jeffrey epstein" <jeevacation®gmail.com>, Paul Morris Cc: "Vinit Sahni" , "Nay Gupta" a, "Vahe Stepanian" Subject: Re: [C] Date: Thu, 13 Mar 2014 13:24:29 +0000 Importance: Normal Classification: Confidential Jeffrey - Consider the USDRUB I-mo binary for —25.5% (very sensitive to spot, so indicative level, wed work an order 26% or better). vanilla calls for comparison, lmth 3% OTM vanilla call is —0.57%/0.67% (12.4% / 13.25% vol) 2mth 4.25% OTM vanilla call is — 0.96%/1.08% (12.2% 113% vol) Nav highlights the binary below, where the payout is much cleaner. Ruble weakens 3% (european observation)in this example, and payout is SImm for $255k invested: 1-MONTH USD/RUB 3% OTM BINARY CALL costs 25.4% of payout European Digital on USD/RUB Strike: 37.55 Payout: USD 1,000,000 Payout Ccy: USD Expiry: Fri 11-Apr-2014 Settlement: Mon 14-Apr-2014 ZoneCut: MO Premium: USD 255,000 Premium Date: Fri 14-Mar-2014 This Digital pays the owner USD 1,000,000 if USDRUB is above 37.55 at the time of expiry. Tazia Smith Director Key Client Partners - US Deutsche Bank Securities, Inc. Deutsche Asset & Wealth Management EFTA00703353