The strike price might be set by recommendation to the spot cost (market value) of the hidden security or commodity on the day a choice is secured, or it may be repaired at a discount rate or at a premium. The seller has the matching responsibility to fulfill the transaction (i.An alternative that communicates to the owner the right to buy at a particular price is referred to as a call; an option that communicates the right of the owner to cost a specific cost is described as a put. The seller may give a choice to a purchaser as part of another transaction, such as a share problem or as part of an employee reward plan, otherwise a buyer would pay a premium to the seller for the choice.