To: Jeevacation[jeevacation@gmail.com] From: Jeffrey M Matusow Sent: Fri 5/28/2010 3:26:37 PM Subject: Dividend hedge Your open dividend positions are: EUR 10MM 2011 EUR 15MM 2012 I would put on hedges as follows: 1. Buy another 10MM Euro puts (you are already long 10MM) 2. Buy 20MM 5yr protection on the iTraxx Europe index (125 large Eur. companies) - currently trading at 120bps; hit a high of 216bps in Dec-08; low since 1/1/08 was 50bps - if it goes back to 50bps, you lose 630k - if it goes back to 216bps, you make 860k Jeffrey M. Matusow JPMorgan Private Bank 140 West 57th Street. 33rd Floor. New York. NY 10019 I Fax' 212 310 01081 Email. IRS Circular 230 Disclosure JPMorgan Chase & Co and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used. and cannot be used, in connection with the promotion. marketing or recommendation by anyone unaffiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties. EFTA_R1_01482100 EFTA02417299