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22 Derivative financial instruments
Interest and currency derivative contracts and share forward contracts
MEUR 2013 2012
Contract
or notional
value
Fair value Not
recognized
as an income
Contract
or notional
value
Fair value Not
recognized
as an income
Interest rate swaps 800 17 -4 1,030 26 -6
Forward foreign exchange contracts 1,452 11 10 1,945 15 11
Currency options
Purchased 196 2 2 113 0 0
Written 192 3 3 92 2 2
Oil and freight derivative contracts
2013 2012
Volume
million
bbl
Fair value Not
recognized
as an income
Volume
million
bbl
Fair value Not
recognized
as an income
Sales contracts 6 -11 -11 19 13 13
Purchase contracts 8 10 10 17 -10 -10
The fair values of foreign exchange currency derivative contracts are based on market values at the balance sheet date. The fair values of interest rate swaps are the present values of the estimated future cash flows and the fair values of currency options are calculated with option valuation model.
The fair value of exchange traded oil commodity futures and option contracts are based on the forward exchange market quotations at the balance sheet date. The fair value of over-the-counter oil commodity derivative contracts is based on the net present value of the forward contracts quoted market prices at the balance sheet date. Physical sales and purchase agreements within trading activities are treated as derivatives and reported in the 'Derivative financial instruments' table.