The strike rate may be set by recommendation to the spot cost (market rate) of the underlying security or product on the day a choice is secured, or it may be repaired at a discount rate or at a premium. The seller has the corresponding responsibility to meet the transaction (i.An option that conveys to the owner the right to buy at a particular cost is described as a call; an alternative that conveys the right of the owner to sell at a specific cost is described as a put. The seller might approve an option to a purchaser as part of another deal, 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 choice.