SMFG Notes to Consolidated Financial Statements (c) Valuation technique used for valuating fair value of stock options  Stock options granted in the fiscal year ended March 31, 2011 were valued using the Black-Scholes option pricing model and the  principal parameters were as follows: Date of resolution July 28, 2010 Expected volatility  *1 ........................................................................ 51.44%  Average expected life $^{*2}$ ..................................................................... 4 years  Expected dividends $^{*3}$ ........................................................................ ¥100 per share  Risk-free interest rate $^{*4}$ .................................................................... 0.23%  *1 Expected volatility is calculated based on the closing price of common shares of SMFG on each trading day in the 4 years between August 14, 2006 and August 13, 2010. *2 The average expected life could not be estimated rationally due to insufficient amount of data. $^{*3}$ Expected dividends are based on the actual dividends on common stock for the fiscal year ended March 31, 2011. $^{*4}$ Japanese government bond yield corresponding to the average expected life. Therefore, it was estimated based on average assumption periods of directors of SMFG and SMBC. Only the actual number of forfeited stock options is reflected because it is difficult to rationally estimate the actual number of stock  options that will be forfeited in the future.  (d) Method of estimating number of stock options vested  (2) Kansai Urban Banking Corporation  (a) Outline of stock options  Date of resolution June 28, 2001 June 27, 2002 June 27, 2003 June 29, 2004 June 29, 2005 June 29, 2006 Title and number of grantees ........................................... Directors and employees 45  Directors and  employees 44 Directors and  employees 65  Directors and  employees 174  Directors and  employees 183 Directors 9 Number of stock options ................................................. Common shares 238,000 Common shares 234,000 Common shares 306,000 Common shares 399,000 Common shares 464,000 Common shares 162,000 Grant date ....................................................................... July 31, 2001 July 31, 2002 July 31, 2003 July 30, 2004  July 29, 2005 July 31, 2006 Condition for vesting ....................................................... N.A. N.A. N.A. N.A. N.A. N.A. Requisite service period ................................................... N.A. N.A. N.A. N.A. N.A. N.A. Exercise period ................................................................ June 29, 2003 to June 28, 2011  June 28, 2004  to June 27, 2012 June 28, 2005  to June 27,  2013  June 30, 2006 to June 29,  2014  June 30, 2007  to June 29,  2015  June 30, 2008 to June 29, 2016 Date of resolution June 29, 2006 June 28, 2007 June 28, 2007 June 27, 2008 June 26, 2009 Title and number of grantees .......................................... Officers not  doubling as directors 14 Employees 46 Directors  10 Officers not  doubling as  directors 14 Employees 48 Directors 9 Officers not  doubling as  directors 16  Employees 45 Directors 11 Officers not  doubling as  directors 14  Employees 57 Number of stock options ................................................. Common shares 115,000  Common shares 174,000 Common shares 112,000 Common shares 289,000 Common shares 350,000 Grant date ....................................................................... July 31, 2006 July 31, 2007 July 31, 2007 July 31, 2008 July 31, 2009 Condition for vesting ....................................................... N.A. N.A. N.A. N.A. N.A. Requisite service period ................................................... N.A. N.A. N.A. N.A. N.A. Exercise period ................................................................ June 30, 2008 to June 29,  2016 June 29, 2009 to June 28, 2017 June 29, 2009 to June 28, 2017 June 28, 2010  to June 27,  2018 June 27, 2011  to June 26,  2019 SMFG  2011 123