In 1986 Standard Oil issued some bonds. At T investors received $1,000 and an additional amount based on the oil price at that time. The additional amount was 170 times the excess of the oil price over $25. The maximum additional amount paid was $2,550.
Express the formula and draw the payoff from this bond at T. Can you decompose the payoff into 2 different types of call options?
Show with diagram and equations.