EFTA01467930.pdf

Subject: Re: First BRL note valuation date 3/20, poised to settle beyond barrier (down —20%) [C] From: Paul Morris sz: > Date: Mon, 17 Mar 2014 22:11:08 -0400 To: Tazia Smith Paul Morris < Classification: Confidential Thx, I know we spoke with him about these, thx From: Tazia Smith Sent: 03/17/2014 09:52 PM EDT To: Paul Morris/- ; Tazia Smith/III- Subject: Re: First BRL note valuation date 3/20, poised to settle beyond barrier (down —20%) [C] Classification: Confidential lyr ago The risk reward was such it made sense to hold. if brl recouped (or just bounced!) 3-10pct over the time they were here at DB, he could get back 100c on the dollar vs 75-80c (20-25c loss/'sunk cost'); on otherwords, there was <10pct likely downside and >20pct potential upside from levels where the notes were from where we got them. We discussed few times w him, and w Vinit/- Nay. Not just me. Outcome should not be a surprise. Tazia Smith Director Key Client Partners - US Deutsche Bank Securities, Inc. Deutsche Asset & Wealth Management 345 Park Avenue - 26th Floor New York, NY 10154 Tel: Mobile: Fax: E-mail: EFTA01467930  From: Paul Morris Sent: 03/17/2014 09:24 PM EDT To: Tazia Smith/ Subject: Re: First BRL note valuation date 3/20, poised to settle beyond barrier (down —20%) [C] Classification: Confidential When did jp put this one on? And I guess there is no way to get out of them, thx From: Tazia Smith Sent: 03/17/2014 08:51 PM EDT To: "jeffrey epstein" <[email protected]> Cc: Paul Morris Subject: Re: First BRL note valuation date 3/20, poised to settle beyond barrier (down —20%) [C] Classification: Confidential Mark-to-market on the note was $799k (down $201k) intrinsic value is $802k (down $198k), subject to moves in BRL for the next 3 days. Tazia Smith Director Key Client Partners - US Deutsche Bank Securities, Inc. Deutsche Asset & Wealth Management 345 Park Avenue - 26th Floor New York, NY 10154 Tel: Mobile: Fax: E-mail: EFTA01467931  From: Jeffrey Epstein [[email protected]] Sent: 03/17/2014 06:02 PM CST To: Tazia Smith Subject: Re: First BRL note valuation date 3/20, poised to settle beyond barrier (down —20%) [C] is there a number ??? On Mon, Mar 17, 2014 at 1:44 PM, Tazia Smith e > wrote: Classification: Confidential Jeffrey - First BRL note's valuation date is this Thursday, 3/20 (settles 3/27); presently down 19.8%, intrinsic. Your original investment was $1mm notional. Initial strike: 1.9619 15% european barrier: 2.2562 Current USDBRL spot: 2.3505 Your second note has a final valuation of 4/14. Initial strike 2.0035, european barrier =2.3040. Recall that the payout on these was as follows: a) make 28.5% if BRL is up more than 3% vs. USD at maturity, b) make 5% if BRL is up between 0-3% vs USD, c) get your principal down less than 15% vs. USD, d) loose 1 for 1 if BRL is down more than 15% vs USD at maturity (max loss 100%) Used with permission of Bloomberg Finance LP Tazia Smith EFTA01467932 Director I Key Client Partners - US Deutsche Bank Securities Inc Deutsche Asset & Wealth Management 345 Park Avenue, 26th Floor New York, NY 10154 Tel. Fax Mobile Email This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. *********************************************************** The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected], and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA01467933