The strike price may be set by reference to the spot cost (market rate) of the hidden security or product on the day an option is taken out, or it might be repaired at a discount or at a premium. The seller has the corresponding obligation to satisfy the transaction (i.A choice that conveys to the owner the right to purchase a specific cost is described as a call; a choice that communicates the right of the owner to cost a particular cost is referred to as a put. The seller may approve a choice to a buyer as part of another transaction, such as a share issue or as part of a staff member incentive scheme, otherwise a purchaser would pay a premium to the seller for the option.