The strike rate might be set by referral to the area price (market cost) of the hidden security or commodity on the day an option is taken out, or it may be repaired at a discount or at a premium. The seller has the matching responsibility to meet the deal (i.An alternative that communicates to the owner the right to purchase a specific rate is described as a call; a choice that conveys the right of the owner to sell at a specific price is referred to as a put. The seller may give an alternative to a buyer as part of another deal, such as a share problem or as part of a staff member incentive plan, otherwise a purchaser would pay a premium to the seller for the option.