EFTA Document EFTA01450694

From: Paul Morris Sent: 12/20/2013 6:01:25 PM To: Jeffrey Epstein [email protected]) Subject: Re: Fwd: Japanese Equity Basket... [CI Classification: Confidential Spoke with Caroline. will circle back to you. Noting is more important than getting the best resources in front of you and getting this right. Thanks for the time today. From: Jeffrey Epstein Ijecvacation'Agmail.coml Sent: 12/20/2013 09:34 AM EST To: Paul Morris Subject: Fwd: Japanese Equity Basket... ICI Forwarded messa From: Tazia Smith < Date: Wed, Dec 18, 2013 at 2:31 PM Subject: Japanese Equity Basket... [C] To: 'eevacation(it, Cc: , Paul Morris Classification: Confidential Jeffrey - > , Vahe Stepanian Now that the FOMC decision is behind us (with the $10bn taper we just talked about), here is the basket of single-name Japanese equities that we put together to build on your bullish view (presently in DXJ). To incorporate your bearish yen view, we could quanto this basket like we talked about...in note form, we priced 13mos with HSBC, comes to a 95% participation eg. if the basket was up 18%, note would be up 17.1%; if basket is down 10%, note is down 9.5%. max loss 95% of principal (indicative levels only, subject to market movement, as of 12/18/13). We can look to add to your yen short position opportunistically as an alpha overlay (USDJPY now at 103.40). Let us know your thoughts, Tazia Indicative levels, subject to market movement. Source: Bloomberg and DB Global Markets Research 12/16/13. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 106510 CONFIDENTIAL SDNY_GM_00252694 EFTA01450694