EFTA01461208.pdf

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 —SlOmm) Expiry: Tue 03-Jun-2014 (6m) Settlement: Thu 0S-Jun-2014 Premium: USD -103,400 2) Sell European GBP Call on GBP/USD Strike: 1.70 Notional: GBP 5,882,352.94 (or -410mm) Expiry: Wed 03-Dec-2014 (12m) Settlement: Fri 0S-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 -SlOmm) 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 @ —S560; up from 4519.80 on 11/22). I know you're looking to sell calls, will provide levels if still interested. Recall you're long 2k AAPL di —5529.06. Have a great day. Thank you, vahe (Embedded image moved to file: pic17092.gif) vahe Stepanian Associate I wealth Investment Coverage Deutsche Bank Securities Inc. Deutsche Asset & Wealth Management 345 Park Avenue - 26th Floor New York, NY 10154-0004 Tel. Fax CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 123096 CONFIDENTIAL SDNY_GM_00269280 EFTA01461208