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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
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, one of 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 USD209.00. 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 are the British pound- and euro-denominated prices for the USD209.00 round trip fare in local currency, if purchased on the following dates, at the accompanying spot rates drawn from the Financial Times? British pound Spot Rate ($/) Euro Spot Rate ($/) Date of Spot Rate Monday $1.4550 $1.1224 Tuesday $1.4605 $1.1190 Wednesday $1.4532 $1.1184 The Channel Tunnel or "Chunnel" passes underneath the English Channel between Great Britain and France, a land-link between the Continent and the British Isles. One side is therefore an economy of British pounds, the other, one of euros. If you were to check the Chunnel's rail ticket Internet rates you would find that they would be denominated in U.S. dollars (USD). For example, a first-class round-trip fare for a single adult from London to Paris via the Chunnel through RailEurope may cost USD209.00. This currency neutrality, however, means that customers on both ends of the Chunnel pay differing rates in their home currencies from day to day. What are the British pound- and euro-denominated prices for the USD209.00 round trip fare in local currency, if purchased on the following dates, at the accompanying spot rates drawn from the Financial Times? British pound Spot Rate ($/) Euro Spot Rate ($/) Date of Spot Rate Monday $1.4550 $1.1224 Tuesday $1.4605 $1.1190 Wednesday $1.4532 $1.1184
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