From: Vahe Stepanian <

From: Vahe Stepanian < IMa> To: jeevacation@gmail.com Cc: , Paul Morris cca> Subject: GBP + AAPL [C] Date: Tue, 03 Dec 2013 15:20:58 +0000 Inline-Images: unnamed; unnamed(1) Classification: Confidential Good Morning Jeffrey, Hope you had a great holiday weekend. As you have likely seen, GBP is currently at a 2 yr. high vs. USD (@ —1.64; see graph below). The most recent move up has been attributed to a rise in construction activity for a seventh month, the fastest pace since August 2007. I recall you mentioned in our meeting that your view is to sell GBP if it approaches 1.65. For what it's worth, our DB analysts have a bearish view on the pound. A recent (DB) FX note discusses reasons why it's tough to build a fundamentally bullish case for sterling with the market pricing the first BoE hikes by mid-2015 (well ahead of the ECB and even the Fed). We see potential for GBP to reverse to the mid-1.50s by year-end. With that said, we priced up a few options that I've included below - consider selling a call, buying a put or a risk reversal. Recognize that GBP vol. is currently relatively low (vs. historical levels). Spot ref = 1.6397 1) Sell European GBP Call on GBP/USD Strike: 1.67 Notional: GBP 5,988,023.95 (or -$10mm) Expiry: Tue 03-Jun-2014 (6m) Settlement: Thu 05-Jun-2014 Premium: USD -103,400 2) Sell European GBP Call on GBP/USD Strike: 1.70 Notional: GBP 5,882,352.94 (or —$10mm) Expiry: Wed 03-Dec-2014 (12m) Settlement: Fri 05-Dec-2014 Premium: USD -123,900 3) Buy European GBP Put on GBP/USD Strike: 1.6376 (ATMF) Notional: GBP 5,988,023.95 (or -$10mm) Expiry: Tue 03-Jun-2014 (6m) Settlement: Thu 05-Jun-2014 Premium: USD 219,365.27 Also worth mentioning —AAPL has run up quite a bit in the past few days (currently trading @ -$560; up from $519.80 on 11/22). I know you're looking to sell calls, will provide levels if still interested. Recall you're long 2k AAPL @ —$529.06. Have a great day. Thank you, Vahe EFTA01140586 Vahe Stepanian Associate I Wealth Investment Coverage Deutsche Bank Securities Inc. Deutsche Asset 8. Wealth Management 345 Park Avenue - 26th Floor GBP BGN Curncy 12/03/2010 1D ' 95) Save As 12/03/2013 Last Price SY Max 96) Actions -' 9-6Edit -W slin rinr ie art BGN Line 11) Compare Mov. Avgs IM No Lower Chart la USD ll Daly • Sr fe Security/Study II Event 0 r 'U Last Price 1.6407 [ T High on 04/29/11 1.6707 + Average 1.5827 1 Low on 07/09/13 14867 1.6500 4 Dec Kw Jun Sig Dec Mar Jun Sep Dec Mar Jun Sep Dec I 2012 I 2013 Australia 61 2 9777 8600 Brazil 5511 3048 4500 Europe 44 20 7330 7500 Germany 49 69 9204 1210 Hong Kong 852 2977 6000 Japan 81 3 3201 8900 Singapore 65 6212 1000 U.S. 1 212 318 2000 Copyright 2013 Bloomberg Finance SN 264224 H703-1366-2 03-Dec-13 10.14.24 EST GMT-5.00 P.16000 *15500 LS000 This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. EFTA01140587