Why does a rise in the dollar hurt Markel?

Questions

1. Why does a rise in the dollar hurt Markel? How does a falling dollar help Markel?

2. What does Markel do to hedge its currency risk? Can Markel use hedging to completely eliminate its currency risk?

3. Comment on Markel’s policy of selective hedging. Are there any speculative elements involved in such a policy? Would you recommend Markel continue to follow a policy of selective hedging? Why or why not?

4. What are the basic elements of Markel’s pricing policy? Does this pricing policy reduce its currency risk? Explain.

5. Does locking in Markel’s dollar costs of raw materials through multiyear dollar contracts automatically reduce the company’s currency exposure?

Place Your Order Here!

Leave a Comment

Your email address will not be published. Required fields are marked *