To: Jeffrey [email protected]] From: Dr. Henry Jarecki Sent: Fri 7/16/2010 4:27:48 PM Subject: FW: Annualization Charts From: Douglas Hepworth Sent: Friday, July 16, 2010 11:15 AM To: Dr. Henry Jarecki Subject: RE: Annualization Charts The customary assumption is that securities returns are normally distributed and that prices are lognormally distributed. That assumption deals with this issue. A $1 move when a security is $50 is a very different thing than the same move when the security is $2. I have not seen a reasonable justification for a belief that a fixed dollar move would retain a consistent probability regardless of the price of the underlying. From: Dr. Henry Jarecki Sent: Tuesday, July 13, 2010 10:54 PM To: Douglas Hepworth Subject: FW: Annualization Charts View? From: Alessandro Motto Sent: Tuesday, July 13, 10 17:02 To: Dr. Henry Jarecki Subject: Annualization Charts Dr. Jarccki, EFTA_R1_01470157 EFTA02409767

I hope the attached sheds some light on the issue. Regards, Alessandro EFTA_R1_01470158 EFTA02409768