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78 Nissan Annual Report 2008
Company name Nissan Shatai Co., Ltd. Nissan Shatai Co., Ltd. Nissan Shatai Co., Ltd.
2002 Stock Options 2003 Stock Options 2004 Stock Options
Exercise price (Yen) 317 421 759
Average price per share upon
exercise (Yen) 615 786 887
Fair value per share at grant date (Yen) — — —
Company name Calsonic Kansei Corporation Calsonic Kansei Corporation Calsonic Kansei Corporation
2003 Stock Options 2004 Stock Options 2005 Stock Options
Exercise price (Yen) 737 844 759
Average price per share upon
exercise (Yen) — — —
Fair value per share at grant date (Yen) — — —
3. Method for estimating per share fair value of stock options
The per share fair value of the 2007 stock options granted during the fiscal year ended March 31, 2008 was estimated as follows.
1) Technique of estimation used: Binomial model
2) Basic factors taken into account for the estimation:
2007 Stock Options [1st] 2007 Stock Options [2nd]
Expected volatility of the share price (Note 1) 22.80% 28.50%
Expected life of the option (Note 2) 5 years and 6 months 5 years and 10 months
Expected dividend (Note 3) ¥40 ¥40
Risk-free interest rate (Note 4) 1.30% 1.14%
Notes: 1. The volatility of the share price for the expected life of the option is estimated by taking into account the volatility of the entire stock market, the
characteristics of the Company’s stock and the fair value of the stock options, while drawing upon the actual share prices in the past.
2. Because there is not enough data to make a reasonable estimation, Expected life of the option is based on the assumption that the options are evenly
exercised on every March 1, June 1, September 1 and December 1 during the exercise period.
3. According to the Nissan Value Up dividend policy.
4. Risk-free interest rate is the yield on government bonds for the period that corresponds to the remaining life of the option.
4. Estimation of the number of stock options vested
Because it is difficult to reasonably estimate the number of options that will expire in the future, historical data is reflected for the options that
have not yet been vested, and the number of options that have actually forfeited is reflected for the options that have already been vested.