EFTA01392926.pdf

Deutsche Bank Wealth Management. Special. Statement for Uncovered Option Writers Acceeett Na N4Gxxx968 Jeffrey Epstein There are special risks associated with uncovered option writing which expose the investor to potentially &gnificart loss. I understand that this type of strategy may not be suitable for all customers approved for options transactions. I also understand each of the following: 1, The potential loss of uncovered call writing is unlimited, since there is no upper limit on a stock's price and the loss to a writer of an uncovered call equals the stock price minus the exercise piece. The writer of an uncovered call is in an extremely risky position, and may incur large losses if the value of the underlying instrument increases above the exercise price. Such a loss can exceed the equity in the call writer's account. 2. Tne potential loss from writing uncovered put options is also substantial. The writer of an uncovered put option bears a risk of loss it the value of the underlying instrument declines below the exercise price. However, since stock prices cannot be lower than zero, the maximum loss is equal to the strike price of the put sold less the premium received for that put, Such loss could be substantial if there is a significant decline in the value of the underlying instrument and can exceed the equity in the put writer's account. 3. For combination writing, where the investor writes both a put and a call on the same undedyina instrument. the potential risk is unlimited and can exceed the equity in the option writer's account. 4. Uncovered option writing is thus suitable only for the knowledgeable investor who understands the risks, has the financial capacity and willingness to incur potentially substantial losses and has sufficient liquid assets to meet applicable margin requirements. In this regard, if the value of the underlying instrument moves against an uncovered writer's options position, the investor's broker may request significant additional margin payments. If an investor does not make such margin payments, the broker may liquidate stock or options positions in the investors account with little or no prior notice In accordance with the investors margin agreement. 5. The option writer may not be ale to rely on the secondary marlet. If a secondary market in options were to become unavailable, Investors could rot engage in closing transactions,mien option writer would remain obligated until excitation or assignment 6. The writer of an American-style option is subject to being assigned ail exercise at any time after he has written the option until the option expires. By contrast. the writer of a European-style option is subject to exercise assignment only during the exercise period. NOTE: It is expected that the person(s) signing below will read the booklet entitled Characteristics and Risks of Standardized Options available from your broker. Particular aMmtion is directed to the chapter entitled "Risks of Buying and Writing Options." This statement is not intended to enumerate all of the risks entailed in writing uncovered options. i have read and,undenfeqd the above statement regarding the special risks associated with uncovered option writing and represent t such trading is suitable in light of my investment objectives, which include speculation, as well as my financial situation Fisk tolerance an knowledge. I understand that you will rely on the representations I have made herein and in the Opti , Agreement ar₹f Approval Form I provided to you in determining whether to approve my account for the options strategi have elect and I hereby certify the truth and accuracy of such1s arts. /0 / 10/43 S'icno Date Signed Date Sag.100 One amen, One Approved for Uncovered Calls : Uncovered Puts RUPiletiewtaer Apretwei Dote Ceutecee hook Sesuritin ine_ a LIMO.,y Of DO:ASChtt SW* AO, conduets !want/fleet bookie., a,,u steatites at:teethes too United Setts. 2017 CH-J:Sete Bank Atii AN 'Val ;nerved. WM1?936 006418.120017 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0098245 CONFIDENTIAL SDNY_GM_00244429 EFTA01392926