From: Tazia Smith To: "Jeffrey epstein" [email protected]> Subject: Re: [C] Date: Thu, 13 Mar 2014 13:31:04 +0000 Importance: Normal Classification: Confidential Per my voicemail, consider Imo 3pct otm binary (-255k for 1mm payout) along w a 2mo 3pct otm vanilla for —108bps (10-20mm notional) Tazia Smith Director Key Client Partners - US Deutsche Bank Securities, Inc. Deutsche Asset & Wealth Management From: Tazia Smith Sent: 03/13/2014 09:24 AM EDT To: "Jeffrey epstein" <[email protected]›; Paul Morris Cc: Vinit Sahni; Nay Gupta; Vahe Stepanian Subject: Re: [C] Classification: Confidential Jeffrey - Consider the USDRUB 1-mo binary for —25.5% (very sensitive to spot, so indicative level, work an order 26% or better). vanilla calls for comparison, I mth 3% OTM vanilla call is —0.5714/0.67% (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 Slmm for $255k invested: I-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 EFTA00703360