12. Computation Method for the Amount to be Paid upon allocation of Stock Acquisition Rights
The amount to be paid in exchange for each Stock Acquisition Right shall be the amount derived by multiplying the option price per share calculated based on the following formula, which is the Black-Scholes model, and the basic values in (2) through (7) below, by the Number of Granted Shares.
in which
(1) Option price per share( C )
(2) Stock price( S ):The closing price of the common shares in the Company under normal trading on the Tokyo Stock Exchange on August 18, 2018 (in case there is no closing price, the closing price on the trading day immediately preceding August 18, 2018.)
(3) Exercise Price( X ):One yen
(4) Expected remaining period( T ):7 years
(5) Volatility( σ ):The fluctuation rate calculated based on the closing price of the common shares in the Company on each of the trade dates during the 7 years (from August 19, 2011 to August 18, 2018)
(6) Risk-free interest rate( r ):Interest rate on a government bond, the outstanding years of which corresponds to the expected remaining period.
(7) Dividend yield( q ):
Dividend per share (dividend paid for the fiscal year ended March 31, 2018) divided by the stock price provided for in (2) above. (8) Cumulative distribution function for standard normal distribution( N(.))