The strike price might be set by referral to the spot rate (market price) of the hidden security or product on the day a choice is taken out, or it might be fixed at a discount rate or at a premium. The seller has the matching obligation to meet the transaction (i.A choice that conveys to the owner the right to buy at a specific cost is referred to as a call; an alternative that communicates the right of the owner to sell at a specific price is referred to as a put. The seller might approve an alternative to a buyer as part of another deal, such as a share issue or as part of an employee reward plan, otherwise a buyer would pay a premium to the seller for the choice.