Suppose Germany has achieved internal and external balance. Then, they are forced to bail out Greece. Germany must use money that they would have spent on themselves (or their citizens). Using the II-XX graph, show how this creates problems for Germany while they (and Greece) are a part of the Eurozone. How can internal balance be restored? External balance?

Why does one party receive a premium when dealing with an option? Would an American-style option or a European-style option have a larger premium? Why or why not?