The Group uses separate option pricing models and assumptions depending on the plan. The following table sets out information about awards granted in 2017, 2016 and 2015:
| APP | LTIP | |||||||||||||||||||||||
| Binomial valuation model |
Monte Carlo Simulation and Binomial valuation model |
|||||||||||||||||||||||
| 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||||
|
Weighted average share price |
3,781.0p | 2,725.0p | 2,565.0p | 4,300.0p | 2,846.0p | 2,634.0p | ||||||||||||||||||
|
Expected dividend yield |
n/a | n/a | n/a | 2.05 | % | 2.55 | % | 2.34 | % | |||||||||||||||
|
Risk-free interest rate |
0.10 | % | 0.36 | % | 0.59 | % | ||||||||||||||||||
|
Volatilitya |
24 | % | 24 | % | 22 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Term (years) |
3.0 | 3.0 | 3.0 | 3.0 | 3.0 | 3.0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| a | The expected volatility was determined by calculating the historical volatility of the Company’s share price corresponding to the expected life of the share award. |