22. (Concept Problem) 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 Max (0, S, 32), where S, is the number of points Shaq has recorded by the end of the game. Thus, if he scores 35, call holders receive $3 for each call. If he scores less than 32, call holders receive nothing. A put with an exercise price of 32 would pay off Max (0, 32-S). If Shaq scores more than 32, put holders receive nothing. If he scores 28, put holders receive $4 for each put. Obviously there is no way to ac- tually 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.