Put-call parity is a powerful formula that can be used to create equivalent combinations of options, risk-free bonds, and stock. Suppose that there are options available on the number of points Shaquille O'Neal will score in his next game. For example, a call option with an exercise price of 32 would pay off $\operatorname{Max}\left(0, S_0-32\right)$, where $S_0$ is the number of points Shaq has recorded by the end of the game. Thus, if he scores 35 , call holders receive for each call. If he scores less than 32 , call holders receive nothing. A put with an exercise price of 32 would pay off $\operatorname{Max}\left(0,32-\mathrm{S}_0\right)$. If Shaq scores more than 32 , put holders receive nothingIf he scores 28 , put holders receive $$\$ 4$$ for each put. Obviously there is no way to actually buy a position in the underlying asset, a point. However, put-call parity shows that the underlying asset can be recreated from a combination of puts, calls, and risk-free bonds. Show how this would be done, and give the formula for the price of a point.