Problem 1 Assume the continuous asset price model S(t)=S0e(2/2)t+tZ,whereZN(0,1) Verify the following. E(S(t)2)var(S(t))=S02e(2+2)t=S02e2t(e2t1) Problem 2 It is well known that P(Z2.58)=0.99 for ZN(0,1). Assuming the continuous asset price model in Problem 1, derive the 99% confidence interval for the asset price S(t)