The fair value of share options was estimated at the grant date using a Black-Scholes option pricing model. The information for 2003 is used in accounting for share options under the fair value based method which the Group adopted prospectively effective January 1, 2003. The information for 2002 and 2001 are used to calculate what the effect on net income and earnings per common share would have been if the Group had applied the fair value method as shown in Note [1].
The weighted-average fair value per option and the significant assumptions used to estimate the fair values of options were:
| Dec 31, 2003 | Dec 31, 2002 | Dec 31, 2001 | |
| Weighted-average fair value per option | € 9.92 | € 12.03 | € 21.29 |
| Risk free interest rate | 3.52% | 3.45% | 5.03% |
| Expected lives (in years) | 4.0 | 4.4 | 4.5 |
| Dividend yield | 1.97% | 3.22% | 1.55% |
| Volatility | 26.65% | 43.20% | 32.57% |