Question Assume the Black-Scholes framework. You are given: i. S(t) is the stock price at time t. ii. The stock' s volatility is 25%. ji. The continuously compounded expected rate of return is 8%. iv. The stock pays dividends continuously at a rate of 3% proportional to its price. The continuously compounded risk-free interest rate is 4%. vi. The current stock price is S (0) = 125. Determine the probability that S (10) is less than its median. Possible Answers A 0.21 B 0.36 C 0.50 D 0.64 E 0.82 Question Assume the Black-Scholes framework. You are given: i. S(t) is the stock price at time t. ii. The stock' s volatility is 25%. ji. The continuously compounded expected rate of return is 8%. iv. The stock pays dividends continuously at a rate of 3% proportional to its price. The continuously compounded risk-free interest rate is 4%. vi. The current stock price is S (0) = 125. Determine the probability that S (10) is less than its median. Possible Answers A 0.21 B 0.36 C 0.50 D 0.64 E 0.82