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What was the average exercise price of the options that expired in 2008? Interpreting Disclosure on Employee Stock Options Assume Intel Corporation reported the following in its 2008 10-K report. Share-Based Compensation Effective January 1, 2006, we adopted the provisions of SFAS No. 123(R) . . . Share-based compensation recognized in 2008 was $849 million ($952 million in 2007 and $1,375 million in 2006). We use the Black-Scholes option pricing model to estimate the fair value of options granted under our equity incentive plans and rights to acquire common stock granted under our stock purchase plan. We based the weighted average estimated values of employee stock option grants and rights granted under the stock purchase plan, as well as the weighted average assumptions used in calculating these values, on estimates at the date of grant, as follows: Stock Options 2008 2007 2006 Estimated fair values $5.74 $5.79 $5.21 Expected life (in years) 5.0 5.0 4.9 Risk-free interest rate 3.0% 4.5% 4.9% Volatility 37% 26% 27% Dividend yield 2.7% 2.0% 2.0% Additional information with respect to stock option activity is as follows: (In Millions, Except Per Share Amounts)Number of Shares Weighted Average Exercise Price December 31, 2005 899.9 $26.71 Grants 52.3 $20.04 Exercises (47.3) $12.83 Cancellations and forfeitures (65.4) $28.07 December 30, 2006 839.5 $26.98 Grants 24.6 $22.63 Exercises (132.8) $19.78 Cancellations and forfeitures (65.4) $31.97 December 29, 2007 665.9 $27.76 Grants 25.9 $23.81 Exercises (35.6) $19.42 Cancellations and forfeitures (42.8) $31.14 Expirations (2.4) $22.84 December 27, 2008 611.0 $27.86

What was the average exercise price of the options that expired in 2008? 

Interpreting Disclosure on Employee Stock Options

Assume Intel Corporation reported the following in its 2008 10-K report.

Share-Based Compensation Effective January 1, 2006, we adopted the provisions of SFAS No. 123(R) . . . Share-based compensation recognized in 2008 was $849 million ($952 million in 2007 and $1,375 million in 2006). We use the Black-Scholes option pricing model to estimate the fair value of options granted under our equity incentive plans and rights to acquire common stock granted under our stock purchase plan. We based the weighted average estimated values of employee stock option grants and rights granted under the stock purchase plan, as well as the weighted average assumptions used in calculating these values, on estimates at the date of grant, as follows:

Stock Options                      2008 2007 2006

Estimated fair values          $5.74 $5.79 $5.21

Expected life (in years)        5.0       5.0      4.9

Risk-free interest rate          3.0%    4.5%    4.9%

Volatility                               37%      26%     27%

Dividend yield                       2.7%     2.0%    2.0%

Additional information with respect to stock option activity is as follows:

(In Millions, Except Per Share Amounts)Number of Shares          Weighted Average Exercise Price

December 31, 2005                                     899.9                                          $26.71

Grants                                                           52.3                                           $20.04

Exercises                                                      (47.3)                                         $12.83

Cancellations and forfeitures                        (65.4)                                          $28.07

December 30, 2006                                      839.5                                          $26.98

Grants                                                            24.6                                           $22.63

Exercises                                                      (132.8)                                        $19.78

Cancellations and forfeitures                         (65.4)                                         $31.97

December 29, 2007                                       665.9                                         $27.76

Grants                                                            25.9                                           $23.81

Exercises                                                      (35.6)                                         $19.42

Cancellations and forfeitures                        (42.8)                                          $31.14

Expirations                                                     (2.4)                                           $22.84

December 27, 2008                                       611.0                                          $27.86

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