Chunnel Choices.The Channel Tunnel or "Chunnel" passes underneath the English Channel between Great Britain and France, a land-link between the Continent and the British Isles. One side is therefore an economy of British pounds, the other euros. If you were to check the Chunnel's rail ticket Internet rates you would find that they would be denominated in U.S. dollars? (USD). For example, a first class round trip fare for a single adult from London to Paris via the Chunnel through RailEurope may cost USD167.00. This currency neutrality, however, means that customers on both ends of the Chunnel pay differing rates in their home currencies from day to day. what is the British pound and euro denominated prices for the USD167.00 round trip fare in local currency if purchased on the following dates at the accompanying spot rates drawn from the Financial Times?
Calculate the round trip RailEurope train fare in £ and € below: (Round to two decimal places)
Date of Spot Rate British Pound Spot Rate (£/$) Euro Spot Rate (€/$)
Monday 0.05709 0.8284
Tuesday 0.5737 0.8305
Wednesday 0.5747 0.8317
Calculate the round trip RailEurope train fare in £ and € below: (Round to two decimal places)
Date of Spot Rate Spot Rate (£/$) Spot Rate (€/$) British Train Fare Continental Train Fare
Monday 0.5709 0.8284 £_________ €_______