The strike rate might be set by reference to the spot cost (market value) of the hidden security or product on the day an alternative is gotten, or it might be fixed at a discount rate or at a premium. The seller has the corresponding responsibility to meet the transaction (i.An option that communicates to the owner the right to purchase a particular price is described as a call; an option that conveys the right of the owner to offer at a specific rate is referred to as a put. The seller may grant an alternative to a buyer as part of another transaction, such as a share concern or as part of a staff member incentive plan, otherwise a buyer would pay a premium to the seller for the option.