What is the company using their option contract for? What is the value of the option contract
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The expected term of the options represents the estimated period of time until exercised and is based on historical experience of similar awards, based upon contractual terms, vesting schedules, and expectations of future employee behavior. The expected stock-price volatility is based upon the historical and implied volatility of the Company's stock. The interest rate is based upon the implied yield on U.S. Treasury bills with an equivalent remaining term. Estimated dividend yield is based upon historical dividends paid by the Company. The following table summarizes stock option activity for the year ended December 31, 2022: Aggregate Weighted Average Weighted Average Exercise Price Remaining Contractual Intrinsic Value Life (Years) (Millions) Awards per Share Awards outstanding at December 31, 2021 1,330,002 $ 59.91 Granted Exercised Canceled 242,723 69.81 (121,992) 46.81 (85,012) 69.49 Expired (2,303) 77.07 1,363,418 $ 62.22 927,336 $ 60.25 Awards outstanding at December 31, 2022 Awards exercisable at December 31, 2022 5.98 $ 5.0 4.85 $ 4.8 The aggregate intrinsic value above is calculated before applicable income taxes, based on the Company's closing stock price of $60.72 as of the last business day of the period ended December 31, 2022 had all options been exercised on that date. The weighted average intrinsic value of the options exercised during 2022, 2021 and 2020 was $16.34, $24.43 and $24.41 per share, respectively. As of December 31, 2022, total unrecognized stock-based compensation expense related to non-vested stock options was approximately $4.8 million, which is expected to be recognized over a weighted average period of approximately three years. The Company issues new shares of common stock upon the exercise of stock options. Non-vested stock option activity for the year ended December 31, 2022 is as follows: The expected term of the options represents the estimated period of time until exercised and is based on historical experience of similar awards, based upon contractual terms, vesting schedules, and expectations of future employee behavior. The expected stock-price volatility is based upon the historical and implied volatility of the Company's stock. The interest rate is based upon the implied yield on U.S. Treasury bills with an equivalent remaining term. Estimated dividend yield is based upon historical dividends paid by the Company. The following table summarizes stock option activity for the year ended December 31, 2022: Aggregate Weighted Average Weighted Average Exercise Price Remaining Contractual Intrinsic Value Life (Years) (Millions) Awards per Share Awards outstanding at December 31, 2021 1,330,002 $ 59.91 Granted Exercised Canceled 242,723 69.81 (121,992) 46.81 (85,012) 69.49 Expired (2,303) 77.07 1,363,418 $ 62.22 927,336 $ 60.25 Awards outstanding at December 31, 2022 Awards exercisable at December 31, 2022 5.98 $ 5.0 4.85 $ 4.8 The aggregate intrinsic value above is calculated before applicable income taxes, based on the Company's closing stock price of $60.72 as of the last business day of the period ended December 31, 2022 had all options been exercised on that date. The weighted average intrinsic value of the options exercised during 2022, 2021 and 2020 was $16.34, $24.43 and $24.41 per share, respectively. As of December 31, 2022, total unrecognized stock-based compensation expense related to non-vested stock options was approximately $4.8 million, which is expected to be recognized over a weighted average period of approximately three years. The Company issues new shares of common stock upon the exercise of stock options. Non-vested stock option activity for the year ended December 31, 2022 is as follows:
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