The strike cost might be set by recommendation to the area price (market value) of the underlying security or commodity on the day an alternative is taken out, or it may be repaired at a discount or at a premium. The seller has the matching obligation to meet the transaction (i.An option that conveys to the owner the right to purchase at a particular cost is described as a call; a choice that conveys the right of the owner to offer at a specific rate is referred to as a put. The seller may give an alternative to a buyer as part of another transaction, such as a share concern or as part of a staff member reward scheme, otherwise a buyer would pay a premium to the seller for the alternative.