Ryanair 2008 Annual Report Download - page 76

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76
At March 31, 2008 the range of exercise prices and weighted average remaining contractual life of
outstanding and exercisable options is set forth as follows:
Options Outstanding Options exercisable
Range of
exercise price 1
Number
outstanding
Weighed-
average
remaining
contractual
life (yrs)
Weighted-
average
exercise
price 1
Number
exercisable
Weighed-
average
remaining
contractual
life (yrs)
Weighted-
average
exercise
price 1
2.21-3.21 30,274,734 2.93 2.78 6,838,970 1.20 2.83
3.77-4.99 4,513,875 4.83 4.82 - - -
2.21-4.99 34,788,609 3.18 3.04 6,838,970 1.20 2.83
The Group has accounted for its share option grants to employees at fair value, in accordance with IFRS
2, using a binomial lattice model to value the option grants. This has resulted in a charge of 110.9m (2007:
13.9m) being recognised within the income statement in respect of employee services rendered, which was
based on 19.3m share options within the scope of IFRS 2 (2007: 15.8m) as compared to the total share
options disclosed above (as permitted by the transitional rules in IFRS 1).
The weighted average fair value of the individual options granted during the years ended March 31,
2008 and 2007 were estimated, using a binomial lattice model, based on the following assumptions:
Options Granted
2008 2008 2007
Date Granted ...........................................................................................................
June 8, 2007 June 11, 2007 Apr 7, 2006
Date of earliest exercise.............................................................................................
July 03, 2008 June 11, 2012 Apr 7, 2011
Date of expiration .....................................................................................................
July 03, 2014 June 11, 2014 Apr 7, 2013
Fair Value..................................................................................................................
11.88 12.14 11.51
Assumptions:
Risk-free interest rate ............................................................................................
4.1% 4.5% 3.7%
Volatility* .............................................................................................................
35% 35% 40%
Dividend yield .......................................................................................................
Nil Nil Nil
Expected life (years) .............................................................................................
5.5 5.5 5.5
*historical daily volatility over a five and a half year average period