The strike rate may be set by reference to the spot cost (market cost) of the hidden security or commodity on the day an option is secured, or it may be repaired at a discount or at a premium. The seller has the matching obligation to satisfy the deal (i.An alternative that communicates to the owner the right to purchase a particular price is described as a call; an alternative that conveys the right of the owner to offer at a specific cost 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 reward scheme, otherwise a purchaser would pay a premium to the seller for the choice.