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Notes To Consolidated Financial Statements
exelon corporation and subsidiary companies
106
Weighted Weighted Weighted
Average Average Average
Exercise Exercise Exercise
Price Price Price
Shares (per share) Shares (per share) Shares (per share)
2002 2002 2001 2001 2000 2000
Balance at January 1 14,039,996 $ 43.96 15,287,859 $ 42.13 6,065,897 $ 31.91
Options granted/assumed 3,938,632 47.12 629,200 66.42 11,089,051(a) 46.09
Options exercised (1,821,339) 33.37 (1,695,474) 34.84 (1,725,058) 31.79
Options canceled (270,299) 53.62 (181,589) 52.64 (142,031) 39.95
Balance at December 31 15,886,990 45.80 14,039,996 43.96 15,287,859 42.13
Exercisable at December 31 10,491,184 43.96 8,006,193 38.75 4,953,942 30.04
Weighted average fair value
of options granted during year $ 13.62 $ 19.59 $ 16.62
(a) Includes 5.3 million options converted in the Merger.
The fair value of each option is estimated on the date of grant using the Black-Scholes option-pricing model with the following
weighted average assumptions used for grants in 2002, 2001 and 2000,respectively:
2002 2001 2000
Dividend yield 3.3% 3.2% 3.6%
Expected volatility 36.8% 36.8% 36.8%
Risk-free interest rate 4.6% 4.9% 5.9%
Expected life (years) 5.0 5.0 5.0
At December 31, 2002, the options outstanding, based on ranges of exercise prices,were as follows:
Options Outstanding Options Exercisable
Weighted
Average
Remaining Weighted Weighted
Contractual Average Average
Range of Number Life Exercise Number Exercise
Exercise Prices Outstanding (years) Price Exercisable Price
$10.01-$20.00 560,700 6.14 $ 19.68 560,700 $ 19.68
$20.01-$30.00 926,332 4.64 25.49 926,332 25.49
$30.01-$40.00 4,668,877 7.53 37.87 4,031,683 37.76
$40.01-$50.00 4,844,505 9.39 45.61 1,419,748 42.25
$50.01-$60.00 4,265,109 8.84 59.39 3,159,481 59.47
$60.01-$70.00 621,467 9.03 67.32 393,240 67.28
Total 15,886,990 10,491,184