new memo 5

MEMO V

To: Prof Lawrence A. Souza

From: Tom Bopp

Date: March 3, 2015

Re: Copper prices expected to rise by 10% over next three months

We are tracking copper prices.  Based on our research, we forecast copper prices to rise 10% over the next two months based on the following three factors: Copper prices have continued to fall to near bottom; Copper’s fundamentals look quite solid; People’s Bank of China (PBOC) are slashing rates in a stimulus plan which is expected to bring a rise in copper demand.Therefore, we recommend the following 26 trades:

Indices (3) ETFs (3) Stocks (3)Actions: Buy forwards Buy on margin Buy on margin

Buy futures Buy call options Buy call optionsWrite puts on futures Write put options Write put optionsBuy calls on futures

Trades: 8 8 9Tickers: JJC, CU, CPER COPX, JJC, CUPM SCCO, CCU, SPC

Total Trades: (26)

Copper prices have continued to fall in 2015, to near bottom at a five-year low.

Copper’s fundamentals look quite solid even though there could be a small surplus in the market this year.

Stimulus policy by the People’s Bank of China (PBOC) slashed the one-year deposit rates by 25 basis points to 2.5% and the one year lending rate by the same amount.

We are tracking copper prices.  Based on our research, we forecast copper prices to rise 10% over the next two months based on the following three factors: Copper prices have continued to fall to near bottom; Copper’s fundamentals look quite solid; People’s Bank of China (PBOC) are slashing rates in a stimulus plan which is expected to bring a rise in copper demand.Therefore, we recommend the above 26 trades.