To: jeeyacationftmail.com[jeeyacation@gmail.com]; Jeffrey Epsteinbeevacation©gmail.com] From: Harry Beller Sent Tue 1/3/2012 8:44:49 PM Subject Eur Put Usd Call Jeffrey On 12/13/11 FTC entered into a Eur Put USD Call @1.3075 k/o 1.245 . The premium paid by FTC was $100,000. This option was closed on 12/28/11 at 4:53 PM where spot was 1.29393 and forward rate was 1.2943. The profit was $44,000. The following is an explanation by JP Morgan of the profit computation: On 12/13/2011 FTC bought a EUR put USD 1.3075 strike call with a continuous knock out ® 1.245. The forward reference @ time of purchase was 1.3081. FTC paid 0.500% USD or $100,000 on a $20 MM notional. For comparative purposes; a vanilla 1.3075 EURUSD put would have cost roughly 1.65% USD or $330,000. This option was sold on 12/28/2011 with a forward reference @ time of sale of 1.2943. The premium received for the sale was 0.72% USD or $144,000 on $20 MM notional. If this option were to expire on January 13th, 2012 @ our forward rate ® time of sale (1.2943), the premium would have been —$202,000 or a gain of —$102,000. The option is priced differently than a vanilla option in that the Delta (correlation of the option price relative to the price of the underlying) is significantly less than a vanilla. This is a result of the in-the-moneyness of the option increasing the probability of the option being Knocked out, or worthless. For selling this tailrisk, the option is worth less, hence the cost savings on the purchase versus a vanilla. EFTA_R1_00494418 EFTA01998732