From: Paul S Barrett

From: Paul S Barrett To: Jeffrey Epstein <[email protected]> Subject: RE: Trades Date: Wed, 03 Nov 2010 17:11:38 +0000 Just to confirm: Yes to BP Yes to unwind EURHUF Yes to setting up a line of credit to implement a swap spread widener....this will take a few days. Nothing on gold Paul Barrett, CFA Managing Director Global Investment Opportunities Group JPMorgan Private Bank 40W 57th Street, 33rd Floor, New York, NY 10019 From: Jeffrey Epstein [mailto:[email protected]] Sent: Wednesday, November 03, 2010 12:49 PM To: Paul S Barrett Subject: Re: Trades ok to both.. i have been touting euro alone since july„ I think gold goes to 1260 so no , i don't like EFTA00754054 On Mon, Nov 1, 2010 at 7:56 PM, Paul S Barrett <paul.s.barrett@j morgan.com> wrote: Hi Jeffrey Left you a message. -I think we should buy $3MM of BP via a TRS. Stock is still down $22 (-33%) from the highs in April. Our px target is $48/share. - Our EURHUF position (fwd plus covered option) is down $260K. We should shut it down. Flows into HUF are picking up on a stabilization of their domestic credit markets and I can't see a catalyst on this position. - We should put on a 10yr swap spread widener (buy 10yr treasuries and pay fixed in swaps). If the Fed commits to buying more treasuries, Treasuries should become more expensive relative to swaps. We would need to do around $20MM to make it worthwhile. We should set up a line of credit for this trade. Also what do you think of this QE2 trade: 2 weeks Buy 1355 Gold Call Sell 1330 Gold put Cost = $11/oz If the Fed delivers a large QE2 number, precious metals should do well. If they only promise a gradual approach, we could see gold sell off near term at which time we would be exercised into a long gold position at 1330/oz. Either way, I think the Fed's easy money/inflationary bent should support the precious metals complex. I think this would be a great hedge against our long USD/short JPY position. Paul Barrett, CFA Managing Director Global Investment Opportunities Group JPMorgan Private Bank 40W 57th Street, 33rd Floor, New York, NY 10019 EFTA00754055 This email is confidential and subject to important disclaimers and conditions including on offers for the purchase or sale of securities, accuracy and completeness of information, viruses, confidentiality, legal privilege, and legal entity disclaimers, available at http://wwwjpmorgan.corn/pages/disclosures/email. 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. EFTA00754056