ear Shwa 2007 DAYAlt Ml ID COMMUNICATIM EXCLUD4U Owing tkrwyf holing PIC. • %vitally armed subsidiary as Sank of New York Mellon CerPontim (MY Merton) Pennew uc. meet, fitactia 00049507 DB—SDNY-0012331 EFTA_00160116 EFTA01291681 Deutsche Bank Client Service Information M arch 1,2018 - M arch

ame level of risk or if the risk is lowered while keeping the same level of return. Unfortunately the SR also suffers some caveats. Hendriksson and Merton (1981) and Dybvig and Ingersoll (1982) for example show that non-linear pay offs limit the applicability of the SR as a performance measure. Goetzm

n Managing Director Deutsche Bank Trust Company Americas Global Products & Solutions 345 Park Avenue, 10154.0004 New York, NY, USA ?An-len...fir Merton CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0042287 CONFIDENTIAL SDNY_GM_00188471 EFTA01356433

y. withheld wth respect to such dividends. The IRS may make this iriormabon avelable to the tax authontes in the country in which you are resort In Merton you may be subsea to +treaton reportro requirements and backup wMholding with respect to dividends pad on, and the proceeds of °spawn:in of, shares

S) ARS are debt a phatenedsocunten with an interest a dreoland RHO real( pat edgaayin an auctar Although WOW may be daily. nein!), and monthly resets Merton no aneanteethat Mere wit be lowilay If Mere arena enough &deafen action to redeem the securities aysibblect sale the issue may boa failed aucton Ina

first person to publish a paper, expanding the mathematical understanding of this model and coining the "Black-Scholes" title, was Robert C. Merton. Merton and Scholes won the Nobel Prize for their work in 1997, in the field of Economics. Black, who died in 1995, was ineligible, but was mentioned favor

) 21 • $ 2/10/05 Incoming 7:41 PM 1 - $ $ 2/10/05 New York, NY 7:42 PM (F) - $ 2/10/05 New York, NY 7:52 PM (F) 1 - $ S 2/10/05 Merton, OH 9:10 PM (F) 1 • $ 2/11/05 New York, NY 7:58 AM $ - $ 2/11/05 Miami, FL 9:54 AM (F) 9 $ - $ 2/11/05 W Palm Bch, FL 11:40 AM -

ges until they haw received their principal plus interest Second. no Financier's recoupment of the Financing Amount, plus a preferred mourn of 25% Merton. Third, to the payment of all deferments granted to third panics (e.g. mom, producers, director.) Amounts oil/ in negotiations IVounh, all remaini

oretical economist who is able to model bubbles with a degree of precision. The use of statistical mechanics in economics is even more frustrating. Merton, Black and Scholes cherry-picked the diffusion equation from thermodynamics while completely ignoring its statistical mechanical roots and derivati

entury Bachelier's work was largely forgotten. The use of random walks in finance was rekindled and ultimately led to the option pricing formulae of Merton, Black and Scholes. Unfortunately the random walk process has been removed from it's many body background, and individual prices are treated as mov

STATEMENT PERIc0 %Nth 29. 20D3 TmlliOuem Apl 25. 2003 ACCOUNT NuullEA TASPAKR NUNSER 01 File vs, STATVADIT March 216 2003 SW( Tin ',way is Ur Merton:I NM ANA. AN SWAN dearlitt Tin suennst +WO be MANNA R* no* riko-84 St reAne fee rr nouvrt1INAN1:414. 027 0476,03.11 48 001 EFTA01320850 WARM