73
Straco Corporation Limited • Annual Report 2014
NOTES TO THE FINANCIAL STATEMENTS
14
Straco share option scheme (cont’d)
The number and weighted average exercise prices of share options are as follows:
Weighted
average exercise
price
Number
of options
Weighted
average exercise
price
Number
of options
2014
2014
2013
2013
Outstanding at 1 January
0.216
23,700,000
0.176
19,030,000
Exercised during the year
0.188
(4,470,000)
0.165
(2,130,000)
Granted during the year
0.630
7,620,000
0.311
6,800,000
Outstanding at 31 December
0.338
26,850,000
0.216
23,700,000
Exercisable at 31 December
0.222
19,230,000
0.177
16,900,000
The options outstanding at 31 December 2014 have an exercise price in the range of $0.129 to $0.63 (2013: $0.129 to $0.311) and a weighted
average remaining contractual life of 4.66 years (2013: 5.04 years).
The weighted average share price at the date of exercise for share options exercised in 2014 was $0.65 (2013: $0.33).
The fair value of services received in return for share options granted are measured by reference to the fair value of share options granted. The
estimate of the fair value of the services received is measured based on the Black-Scholes model. The expected life used in the model has been
adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.
Fair value of share options and assumptions
Date of grant of options
12 May
2014
6 May
2013
8 May
2012
5 May
2011
6 May
2010
22 October
2007
Fair value at measurement date
$0.2281
$0.08
$0.04
$0.110
$0.051
$0.106
Share price
$0.645
$0.310
$0.180
$0.170
$0.115
$0.190
Exercise price
$0.630
$0.311
$0.196
$0.176
$0.129
$0.190
Expected volatility
62.24%
54.72%
49.56%
52.96%
38.30%
56.83%
Expected option life
5 – 10 years
5 - 10 years
5 - 10 years
5 - 10 years
5 - 10 years
5 - 10 years
Expected dividends
3.10%
4.03%
4.17%
4.4%
3.28%
1.32%
Risk-free interest rate
2.34%
1.47%
1.50%
2.41%
2.62%
2.76%
