Problem 1 Assume the Black-Scholes framework. You are given: - The stock, whose current price is 100 , pays dividends continuously at a rate proportional to its price. - The stock's volatility is 0.35 . - The continuously compounded expected rate of stock-price appreciation is 15%. - The continuously compounded risk-free interest rate is 12%. Construct a 95% lognormal prediction interval for the price of the stock in 3 months