EFTA Document EFTA01461212

From: Vahe Stepanian Sent: 12/5/2013 2:09: To: jeevacation@gmail.com CC: Paul Morris Subject: Fw: GBP + AAPL (C] Classification: Confidential Good Afternoon Jeffrey - following up Tuesday's email (included below): 1) WSJ has reported that AAPL has signed a deal w/China mobile, providing it a boost in the worlds largest mobile market. Shares have reacted, reaching a new 52 wk. high today @ —$572 (vs. $565.00 close yesterday) on the back of the report. Consider selling Jan 595 or 600 Calls (currently $12.20 and 510.70 bid, respectively). 2) We believe the GBP trade is still relevant ahead of payrolls tomorrow. ADP came in ahead of street expectations yesterday (215k vs. 170k expected; revised October +54k), and street is calling for headline number of +185k tomorrow morning. GBP is currently —1.6330 (vs. USD), but is bouncing around today and we'd look to enter trade on additional GBP strength. Thank you, Vahe Forwarded by Vahe Steparaon 1205/2013 08 50 AM — From: Vahe Stepaniaa To. Cc: Date: Subject: jeeyacaboregmad.com, 12/03/2013 1020AM GBP + AAPL [C] 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 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 123104 CONFIDENTIAL SDNY_GM_00269288 EFTA01461212