Balyeat, Inc. is currently selling for $$55$ per share. In an effort to raise short term

capital without diluting ownership $($as the owners think that the shares are vastly

underpriced$),$ Balyeat, Inc. is doing a special bond issue. Balyeat, Inc. is issuing a one$-$year pure discount $($i$.$e$.$ zero$-$coupon$)$ $$1000$ face value bond with an intriguing feature. If the stock price at the bond's maturity is above $$55,$ then the bond pays off its face value plus $15$ times the amount the stock price finished above $$55.$ However, the total pay$-$out per bond is capped at $$1300.$ If the stock price at the bond's maturity is at or below $$55,$ then the bond just simply pays off its face value of $$1000.$ Show that this is a combination of a regular bond, a long position in call options on the stock with a strike price of $$55,$ and a short position in call options on the stock with a strike price of $$75.$