EFTA01372798.pdf

From: Stewart Oldfield [ Sent: 9/3/2035 1:27:53 PM To: Daniel Sabba Subject: RE: Hedged MRK IC) Classification: Confidential Is it more efficient to just buy calls? From: Daniel Sabba Sent: Thursday, September 03, 2015 12:50 PM To: 'Jeffrey E.' Cc: Paul Morris; Todd Stevens; Stewart Oldfield; Vahe Stepanian; Ariane Dwyer; 'Richard Kahn' Subject: Hedged MRK [C] Classification: Confidential Jeffrey- please see below as a follow up to yesterday's chat on MRK. Note that MRK reached its 52wk low of $51.17/sh. last Tuesday (8/25), and its currently not too far off of the lows @ $53.44/share. Please let us know the number of shares you wish to purchase outright, as well as the tenor and strikes of the puts. Below, we've included levels for - 10%OTM listed puts, both 3m and 6m tenors. MRK Puts MRK Ref = $53.44 Expiry: November 2015 Strike Bid Ask 47.50 0.83 0.85 50.00 1.31 1.37 Expiry: April 2016 Strike Bid Ask 47.50 2.06 2.18 50.00 2.85 2.96 MRK Nov 47.50 put: implied volatility v. price (per contract) CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0066675 CONFIDENTIAL SDNY_GM_00212859 EFTA01372798