The strike price might be set by reference to the spot rate (market value) of the underlying security or product on the day an alternative is secured, or it may be fixed at a discount rate or at a premium. The seller has the corresponding commitment to fulfill the deal (i.A choice that communicates 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 sell at a specific rate 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 an employee incentive scheme, otherwise a purchaser would pay a premium to the seller for the choice.