Square Enix 2009 Annual Report Download - page 45

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2) Price information
Yen
2002 2004 2005 2005 2007 2007 2008
stock options stock options stock options stock options stock options stock options stock options
Exercise price ¥2,152 ¥2,981 ¥3,365 ¥3,360 ¥3,706 ¥3,706 ¥ 1
Average share price at exercise 3,292 3,489 — — — — —
Fair market value on grant date — — — — 526 A. 526 3,171
B. 594
C. 715
3. Estimate of fair value of stock options
(1) Method of valuation employed—Black–Scholes Model
(2) Main basic values and methods of estimation
2007 stock options 2007 stock options 2008 stock options
Stock price volatility*2 24.0% A. 24.0% 43.9%
B. 25.0%
C. 27.9%
Expected remaining period*3 3.5 years A. 3.5 years 10 years
B. 4.0 years
C. 4.5 years
Expected dividend*4 Dividend yield 0.99% Dividend yield 0.99% Dividend yield 0.87%
Risk-free interest rate*5 0.87% A. 0.87% 1.49%
B. 0.92%
C. 0.97%
Notes: 1. A, B and C indicated above refer to the three rights exercise periods A, B and C indicated in Table 2 (1).
2. Stock price volatility is calculated based on the actual stock price from the stock option grant date extending back the length of the expected remaining period.
3. Owing to a lack of sufficient historical data, it is difficult to determine the expected remaining period in a reasonable manner. Consequently, the expected
remaining period is determined to be the period from the option grant date to the mid-point of the exercisable period.
4. For 2007 stock options, the expected dividend is calculated based on the actual dividend applicable to the fiscal year ended March 31, 2007. For 2008 stock
options, the expected dividend is calculated based on the actual dividend applicable to the fiscal year ended March 31, 2008.
5. The risk-free interest rate represents the interest rate of Japanese government bonds whose remaining periods correspond to the expected remaining periods of
the stock options.
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