The strike price may be set by referral to the area cost (market rate) of the underlying security or product on the day an option is gotten, or it may be fixed at a discount rate or at a premium. The seller has the corresponding commitment to fulfill the transaction (i.A choice that communicates to the owner the right to purchase a particular cost is described as a call; an alternative that conveys the right of the owner to cost a specific rate is described as a put. The seller might grant an option to a buyer as part of another transaction, such as a share concern or as part of a staff member incentive scheme, otherwise a buyer would pay a premium to the seller for the option.