The strike cost might be set by referral to the area rate (market rate) of the underlying security or product on the day a choice is gotten, or it might be fixed at a discount rate or at a premium. The seller has the matching responsibility to meet the deal (i.An option that communicates to the owner the right to purchase a specific price is referred to as a call; an option that conveys the right of the owner to cost a particular cost is described as a put. The seller might give an option to a buyer as part of another deal, such as a share concern or as part of a worker incentive plan, otherwise a buyer would pay a premium to the seller for the choice.