The strike price may be set by reference to the area rate (market price) of the hidden security or commodity on the day an option is gotten, or it may be repaired at a discount or at a premium. The seller has the corresponding commitment to fulfill the transaction (i.An alternative that communicates to the owner the right to purchase a specific price is described as a call; a choice that communicates the right of the owner to offer at a particular rate is referred to as a put. The seller may give an option to a purchaser as part of another transaction, such as a share problem or as part of a staff member incentive plan, otherwise a purchaser would pay a premium to the seller for the option.