What was the average exercise price of the options that expired in 2008? Interpreting Disclosure on Employee Stock OptionsAssume Intel Corporation reported the following in its 2008 10-K report. Share-Based Compensation Effective January 1, 2006, we adopted the provisions of SFAS No. 123(R) . . . Share-based compensation recognized in 2008 was $849 million ($952 million in 2007 and $1,375 million in 2006). We use the Black-Scholes option pricing model to estimate the fair value of options granted under our equity incentive plans and rights to acquire common stock granted under our stock purchase plan. We based the weighted average estimated values of employee stock option grants and rights granted under the stock purchase plan, as well as the weighted average assumptions used in calculating these values, on estimates at the date of grant, as follows:Stock Options 2008 2007 2006Estimated fair values $5.74 $5.79 $5.21Expected life (in years) 5.0 5.0 4.9Risk-free interest rate 3.0% 4.5% 4.9%Volatility 37% 26% 27%Dividend yield 2.7% 2.0% 2.0%Additional information with respect to stock option activity is as follows:(In Millions, Except Per Share Amounts)Number of Shares Weighted Average Exercise PriceDecember 31, 2005 899.9 $26.71Grants 52.3 $20.04Exercises (47.3) $12.83Cancellations and forfeitures (65.4) $28.07December 30, 2006 839.5 $26.98Grants 24.6 $22.63Exercises (132.8) $19.78Cancellations and forfeitures (65.4) $31.97December 29, 2007 665.9 $27.76Grants 25.9 $23.81Exercises (35.6) $19.42Cancellations and forfeitures (42.8) $31.14Expirations (2.4) $22.84December 27, 2008 611.0 $27.86
