COCA COLA CO | 2013 | FY | 3


The weighted-average fair value of options granted during the past three years and the weighted-average assumptions used in the Black-Scholes-Merton option-pricing model for such grants were as follows:
 
2013

 
2012

 
2011

Fair value of options at grant date
$
3.73

 
$
3.80

 
$
4.64

Dividend yield1
2.8
%
 
2.7
%
 
2.7
%
Expected volatility2
17.0
%
 
18.0
%
 
19.0
%
Risk-free interest rate3
0.9
%
 
1.0
%
 
2.3
%
Expected term of the option4
5 years

 
5 years

 
5 years

1 
The dividend yield is the calculated yield on the Company's stock at the time of the grant.
2 
Expected volatility is based on implied volatilities from traded options on the Company's stock, historical volatility of the Company's stock and other factors.
3 
The risk-free interest rate for the period matching the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.
4 
The expected term of the option represents the period of time that options granted are expected to be outstanding and is derived by analyzing historical exercise behavior.

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