Assignment title: Information
This assignment should be done in groups of 6 people. Use the spreadsheets available on LMS, along with the Harvard case to answer these questions. You should print out the spreadsheets and any accompanying graphs and turn in your typed answers. 1. What is a REIT? 2. Why is Nodal Logistics interested in entering the Brazilian market? 3. What special challenges does Nodal face entering the Brazilian market? 4. What kind of currency risk does the Brazilian project pose to Nodal? 5. What are the primary currency risk management methods to be considered by John Penman? 6. What degree of risk does Nodal face if it chooses to remain uncovered? 7. What are the expected dollar proceeds for the various hedging alternatives? • You must provide detailed calculations for the following strategies: a) remaining uncovered; b) forward contracts; c) currency options. • In addition, discuss how the other methods, as outlined in your answer to question 5, should be implemented. 8. Which among the various hedging alternatives would you recommend if you were John Penman? Explain.