EFTA01355751.pdf

OPTION DEPT. PPROVAL: ROSrP Date Comments: gw _. Covered Cali Writing of i__ Purchasing Options O ~O I..1 Option Spreads aO CO Q Uncovered Put Writino O C: Uncovered Call Writin9 Risks, Prohibitions and General Information Concerning Option Trading Important Please read this appendix against loss. I understand that options transactions involve a high degree of risk and offer no guarantee of gain or assurance financial situation and Accordingly, i understand that prior to engaging in any option transaction, I should review my present determine whether it is advisable to incur the risk of loss associated with that particular investment. financial risks in 1. I understand that when I engage in option trading I expose myself to certain, potentially substantial including but identified on the front side of this form under the heading "Client(s) Strategy Requests," addition to those not limited to the following: costs • I understand that? should not buy an option unless I am able to sustain a total loss of the premium and transaction risk of covered options, I understand that I may forfeit participation in capital gains but retain • If I sell (write) me, I may be participation in capital lasses in the underlying security. I understand that if an exercise is assigned to I also understand my position in the underlying security at a time which may be unfavorable to me. forced to liquidate (or a security I am prepared to deliver the underlying security that I should not sell (vette) a covered call option unless of the option. convertible, exchangeabl e. or exercisable into such underlying security) upon the exercise extent that, the market price • If I sell (write) uncovered (naked) options, I risk substantial capital loss if, and to the security increases above the strike price of a call or decreases below the strike price of a put. of the underlying If an exercise Is assigned to me, it will, in all likelihood, be at a time which will force me to assume such a capital loss. I understand that I should not sell (write) a put option or an uncovered call option, especially an Index option, unless I am able to sustain potentially unlimited losses. relationship between the • I am aware that various factors may affect the price of an option contract, such as the the option expires. and the exercise price and market price of the underlying security, the time period remaining until price fluctuation or other characteristi cs of the underlying security. time to time, restrict • I am aware that the respective option exchanges (Exchanges) may, in their discretion and from a fair and orderly transactions in particular options or the exercise of option contracts in the interest of maintaining that I may not market in option contracts or in the underlying security, for the protection of investors. I understand to close a position in the event that a secondary market in the option ceases to exist or the listing exchange be able restricts or suspends trading in the option. sactions on the • I am aware that the Exchanges have established restrictions on certain opening purchase and sale tran Exchanges which are considered to be restricted options. the Financial 2. I understand and agree that my account(s) with DBSI will be handled in accordance with the Rules of Options Clearing Industry Regulatory Authority (FINRA) and the Exchanges on which listed options are traded and of the rules. In accordance Corporation (OCC), as expressed in its prospectus. I am aware of and agree to be bound by such with such rules: the limits I will not attempt to acquire at any time, either by myself or in concert with others, a position in excess ofthat total long prescribed from time to time by the Exchanges. For the purpose of computing such limits, I understand limit. Similarly. call options arid short put options of the same underlying stock must be added to compute the position position limit. total long put options and short call options of the same underlying stock must be added to compute the business • I will not attempt to exercise, either by myself or in concert with others, during any period of five consecutive days. a quantity in excess of the limit prescribed by the Exchanges. to sanctions • I understand that If found in violation of either the position limit or the exercise limit I may be subject in violation. imposed by the Exchange involved and that these sanctions may include liquidation of the positions ray, 3 e' Wtt18970 010721.C61018 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY -0041015 CONFIDENTIAL SDNY_GM_00187199 EFTA01355751