The strike cost might be set by recommendation to the spot cost (market rate) of the hidden security or product on the day a choice is gotten, or it might be fixed at a discount rate or at a premium. The seller has the matching responsibility to satisfy the transaction (i.An alternative that communicates to the owner the right to purchase a particular cost is referred to as a call; a choice that conveys the right of the owner to cost a particular cost is referred to as a put. The seller may give an alternative to a purchaser as part of another deal, such as a share concern or as part of a staff member reward plan, otherwise a purchaser would pay a premium to the seller for the alternative.