Problem 2 Assume the Black-Scholes framework. You are given: The current price of a stock is 80. The stock's volatility is 25%. The stock pays dividends continuously at a rate proportional to its price. The continuously compounded risk-free interest rate is 6%. The expected 1-year stock price is 84.2069. Calculate the expected 1-year stock price, given that a 1-year at-the-money (when issued) European put option on the stock expires in-the-money.