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## 7.3.1  Share option programme 

## 7.3  SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS 

For share options and PSUs granted or measured after 1 January 2010, the volatility is based on presently observed data on Bloomberg’s Options Valuation Function, while prior to 2010 it was based on the historical volatility in the price of Carlsberg A/S’s class B shares over the previous two years. 

The risk-free interest rate is the interest rate on Danish government bonds of the relevant maturity, while the dividend yield is calculated as the expected dividend at the grant date of DKK 5.50 per share (2012: DKK 5.50 per share) divided by the share price. The fair value at 31 December is calculated applying an expected dividend of DKK 8.00 per share. 

For share options granted or measured after 1 January 2010, the expected life is based on exercise at the end of the exercise period, while prior to 2010 it was based on exercise in the middle of the exercise period. 

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## ASSUMPTIONS 

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The average share price at the exercise date for share options was DKK 583 (2012: DKK 493). At 31 December 2013, the exercise price for outstanding share options was in the range DKK 203.50 to DKK 573.50 (2012: DKK 203.50 to DKK 566.78). The average remaining contractual life was 3.8 years (2012: 3.8 years). 

