Problem 2-12 (algorithmic)

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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 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 175.00.

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 175.00

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	British Pound Spot Rate (/$)	Euro Spot Rate (/$)
Monday	0.5656	0.8318
Tuesday	0.5743	0.8283
Wednesday	0.5722	0.8379

Calculate the round trip RailEurope train fare in

and

below:(Round to two decimal places.)

	Spot Rate	Spot Rate		British		Continental
Date of Spot Rate	(/$)	(/$)		Train Fare		Train Fare
Monday	0.5656	0.8318