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The volatility is derived from quotations from external market sources and the expected dividend yield is derived from quotations from external market sources and the binomial option pricing model. Refer to note 3 for a further description of the method used to estimate the fair value and a description of the significant assumptions. 

The liability related to share appreciation rights is valued at fair value at each balance sheet date. Refer to note 28 for details. 

The costs related to the share appreciation rights amount to EUR 4 million (2009: EUR (5) million; 2008: EUR (34) million) and are recognized in the income statement as part of ‘Commissions and expenses’. 

## SHARE OPTIONS 

The following tables present the movements in number of share options, as well as the breakdown by the year in which they were granted. 

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In 2010 and 2009 no share options were exercised. 

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In 2009 and 2010 no share options were granted. 

The costs related to the share options amount to EUR (7) million (2009: EUR 10 million and 2008: EUR 19 million) and are recognized in the income statement as part of ‘Commissions and expenses’. 

## SHARE APPRECIATION RIGHTS AND SHARE OPTIONS 

No share appreciation rights and share options were granted in 2009 and 2010. The fair value of a share appreciation right or share option at the grant date in 2008 amounted to EUR 1.57. This amount is equal to the weighted average fair value for 2008. 

No share options were exercised and no SARs were paid during 2009 and 2010. The total intrinsic value of share options exercised and SARs paid during 2008 amounted to EUR 1 million. 

At December 31, 2010, the total compensation cost related to non-vested awards not yet recognized is estimated at EUR 1 million (2009: EUR 5 million). The weighted average period over which it is expected to be recognized is 0.25 years (2009: 0.8 years). 

No cash is received from exercise of share options during 2010, 2009 and 2008. Cash used to settle share appreciation rights amounts to EUR 0 million in 2010 (2009: EUR 0 million; 2008: EUR 0.4 million). 

The exposure from the issued share appreciation rights and share options is economically hedged by part of the position in treasury shares. 

There have been no modifications to the plans during the financial year. 

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