National Oilwell Varco 2003 Annual Report Download - page 47

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46
The following summarizes information about stock options outstanding as of December 31, 2003:
Weighted-Avg.
Range of Remaining Weighted-Avg. Weighted-Avg.
Exercise Price Contractual Life Shares Exercise Price Shares Exercise Price
$ 5.62 to $19.39 6.48 1,269,776 16.54$ 603,855 14.34$
$20.14 to $25.50 7.99 1,508,410 21.00 535,910 22.57
$33.00 to $40.50 7.09 832,385 40.07 573,882 39.88
Totals 7.25 3,610,571 23.83$ 1,713,647 25.47$
Options Outstanding Options Exercisable
The weighted average fair value of options granted during 2003, 2002 and 2001 was
approximately $8.88, $8.95, and $22.04 per share, as determined using the Black-Scholes option-
pricing model.
The assumptions used in the Black-Scholes option-pricing model were:
Assumptions 2003 2002 2001
Risk-free interest rate 2.6% 2.4% 6.3%
Expected dividend - - -
Expected option life (years) 5 5 5
Expected volatility 48% 54% 55%
On March 11, 2004, we issued 1,170,000 stock options at an exercise price of $28.22.