The strike cost might be set by recommendation to the spot cost (market value) of the underlying security or commodity on the day a choice is gotten, or it might be fixed at a discount 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 purchase at a particular price is referred to as a call; a choice that communicates the right of the owner to cost a particular price is referred to as a put. The seller might approve an option to a purchaser as part of another deal, 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 choice.