EFTA02028723

To: j v in " [email protected]]; Jeffrey [email protected]]; Staley, Jes From: Barrett, Paul S Sent: Mon 1/31/2011 5:48:40 PM Subject: RE: Jeffrey Ideas: Israeli Shekel: % return since 15.lanll = -5% % return last 12 months = +0.50% Indicative Pricing: 3 month ATM ILS put = 1.90% 6 month ATM ILS put = 2.65% 12 month ATM ILS put = 3.85% Alternatively if you wanted disaster insurance I would recommend buying 10% out the money puts: 3 month 10% OTM ILS put = 0.30% 6 month 10% OTM ILS put = 0.67% 12 month 10% OTM ILS put = 1.33% Israel CDS 5yr COS at 150bps Was at 115bps last week. Hit 290bps in Mar09. EFTA_R1_00537445 EFTA02028723 Stock Market Puts Market down 3% since last week Up 14% last 12 months Indicative: 23junll 5% out of the money European Puts @ 3.13% 23jun11 100%/93% European Put Spreads @ 2.42% We have the oil call options in place so alternatively we should consider buying protection on Turkey. Their Syr CDS is at 168bps (was 135bps in early December). We are also looking at Indonesia at 173bps. Paul Paul Barrett, CFA Managing Director Global Investment Opportunities Group 7PMorgan Private Bank 40W S7th Street, 33rd Floor, New York, NY 10019 EFTA_R1_00537446 EFTA02028724 From: Jeffrey Epstein [mailto:[email protected]] Sent: Sunday, January 30, 2011 6:53 AM To: Barrett, Paul 5; Staley, Jes Subject: I think we should prepare to short the israeli market.. lets find a good way to play the uncertainty in the area 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 jeevacation@gmail,com, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA_R1_00537447 EFTA02028725