Question: Regarding the HBS Enron Case Study, - Why did LJM set up a separate SPV to write the put hedge that was sold to Enron?

Regarding the HBS Enron Case Study,

- Why did LJM set up a separate SPV to write the put hedge that was sold to Enron? What was the purpose of the SPV?4 - Was the LJM Rhythms transaction a good deal for Enron? Why or why not? - What was unique about the LJM Rhythms deal that would have gotten the attention of board members or outside investors? What question(s) would you have asked the CFO when he presented the transaction to you at the board meeting?

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