I think it's valid to ask a question you know the interviewee won't know the answer to.
Everyone encounters problems they don't know the answer to. This type of question will give you insight as to what the interviewee's internal process is. If they logically conclude things and start to formulate a correct answer, even if it's not the best dynamic programming algorithm for it, it shows that they can reason well and discover an answer.
Also, since they likely don't know everything about the problem, this sort of question lets you see how comfortable the interviewee is with asking for help or clarification.
I think the best way to answer this type of question is to ask for any clarifications if something is missing or not well known, and then postulate an answer, pointing out why you think it is correct, and why it likely isn't the best solution.