The strike cost may be set by recommendation to the spot price (market value) of the hidden security or commodity on the day an alternative is secured, or it might be fixed at a discount rate or at a premium. The seller has the matching responsibility to fulfill the transaction (i.An option that conveys to the owner the right to buy at a specific rate is described as a call; a choice that conveys the right of the owner to offer at a specific rate is referred to as a put. The seller might give an option to a buyer as part of another deal, such as a share concern or as part of an employee reward scheme, otherwise a buyer would pay a premium to the seller for the alternative.