Share-Based Compensation

3 Months Ended

Jan. 31, 2020

NOTE 14: SHARE-BASED COMPENSATION

For the three months ended January 31, 2020, the Bank recognized compensation expense for stock option awards of $3.9 million (three months ended January 31, 2019 – $3.3 million). For the three months ended January 31, 2020, 2.1 million (three months ended January 31, 2019 – 2.2 million) options were granted by the Bank at a weighted-average fair value of $5.55 per option (January 31, 2019 – $5.64 per option).

The following table summarizes the assumptions used for estimating the fair value of options for the three months ended January 31.



Assumptions Used for Estimating the Fair Value of Options

(in Canadian dollars, except as noted)	For the three months ended
	January 31 2020			January 31 2019
Risk-free interest rate		1.59	%		2.03	%
Expected option life		6.3 years			6.3 years
Expected volatility¹		12.90	%		12.64	%
Expected dividend yield		3.50	%		3.48	%

Exercise price/share price	$	72.84		$	69.39

¹	Expected volatility is calculated based on the average daily volatility measured over a historical period corresponding to the expected option life.