The strike price may be set by recommendation to the spot price (market value) of the hidden security or product 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 fulfill the transaction (i.An alternative that communicates to the owner the right to purchase a specific price is described as a call; an option that communicates the right of the owner to cost a particular rate is described as a put. The seller might approve an alternative to a purchaser as part of another transaction, such as a share problem or as part of a staff member incentive scheme, otherwise a buyer would pay a premium to the seller for the alternative.