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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
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 USD 169.00. 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 USD 169.00 round trip fare in local currency if purchased on the following dates at the accompanying spot rates drawn from the Financial Times? (Click on the icon to import the table into a spreadsheet.) Date of Spot Rate Monday Tuesday Wednesday British Pound Spot Rate (/$) 0.5735 0.5731 0.5721 Euro Spot Rate (/$) 0.8336 0.8306 0.8357 Calculate the round trip RailEurope train fare in and below: (Round to two decimal places.) Spot Rate British Continental Spot Rate (/$) Date of Spot Rate (/$) Train Fare Train Fare Monday 0.5735 0.8336
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