EFTA01283123.pdf

Deutsche Bank
Wealth Management
r4
Special Statement for Uncovered Option Writers
ACI'llll' • Account Name
N4Gxxx968 Jeffrey Epstein
There are special risks associated with uncovered option writing which expose the investor to potentially significant loss.
I understand that this type of strategy may not be suitable for all customers approved for options transactions. I also
understand each of the following:
1. The potential loss of uncovered call writing is unlimited, since there is no upper limit on a stock's price and the loss to
a writer of an uncovered call equals the stock price minus the exercise price. The writer of an uncovered call is in an
extremely risky position, and may incur large losses if the value of the underlying instrument increases above the
exercise price. Such a loss can exceed the equity in the call writer's account.
2. The potential loss from writing uncovered put options is also substantial. The writer of an uncovered put option bears a
risk of loss if the value of the underlying instrument declines below the exercise price. However, since stock prices cannot
be lower than zero, the maximum loss is equal to the strike price of the put sold less the premium received for that put.
Such loss could be substantial if there is a significant decline in the value of the underlying instrument and can exceed the
equity in the put writer's account.
3. For combination writing, where the investor writes both a put and a call on the same underlying instrument, the
potential risk is unlimited and can exceed the equity in the option writer's account.
4. Uncovered option writing is thus suitable only for the knowledgeable investor who understands the risks, has the financial
capacity and willingness to incur potentially substantial losses and has sufficient liquid assets to meet applicable margin
requirements. In this regard, if the value of the underlying instrument moves against an uncovered writer's options
position, the investor's broker may request significant additional margin payments. If an investor does not make such
margin payments, the broker may liquidate stock or options positions in the investor's account, with little or no prior
notice in accordance with the investor's margin agreement.
5. The option writer may not be able to rely on the secondary market. If a secondary market in options were to become unavailable,
investors could not engage in dosing transactions, and an option writer would remain obligated until expiration or assignment.
6. The writer of an American-style option is subject to being assigned an exercise at any time after he has written the option
until the option expires. By contrast, the writer of a European-style option is subject to exercise assignment only during
the exercise period.
NOTE: It is expected that the person(s) signing below will read the booklet entitled Characteristics and Risks of Standardized
Options available from your broker. Particular attention is directed to the chapter entitled "Risks of Buying and Writing Options." This
statement is not intended to enumerate all of the risks entailed in writing uncovered options.
I have read and d the above statement regarding the special risks associated with uncovered option writing and
represents such tradin is suitable in light of my investment objectives, which include speculation, as well as my financial
situation, isk tolerance an knowledge. I understand that you will rely on the representations I have made herein and in
the Opti n Agreement a Approval Form I provided to you in determining whether to approve my account for the options
strategie have electe and I hereby certify the truth and accuracy of such slatime nts.
/Oh zwe
Oate
Signed Date
Signed Date
Signed Dale
Signed
Approved for Uncovered Calls Uncovered Puts
ROP/Manager Approval Date 1:=
- • _ • -- • • - .
Deutsche Bank Securities inc.. a subsidery of Dceutschoe BankN AG, co3nnductDs invesEtment bNankingT and sIecuArities aLctivit ies in the United States
SDNY_GM_0003111=
CO 2017 Deutsche BMA AG. Ail rights reserved. Sr=
CONFIDENTIAL - PURSUANT TO FED R. CRIM. P. 6(e) DB-SDNY-0001645
EFTA_00149430
EFTA01283123