Please explain to me where the .5675 in the following formula came from:
v_0 = .5675(110-E)
This is from the solution to problem 6, lecture 6.
I don't understand where .5675 came from, but I understand the solution.
I'ved attached lectures 5, 6, and the solution to lecture 6.
The formula for a state price vector is in lecture 5, page 3.
i'm just really confused as to where .5675 came from.