The strike rate might be set by referral to the area rate (market value) of the hidden security or commodity on the day a choice is secured, or it might be repaired at a discount rate or at a premium. The seller has the corresponding responsibility to fulfill the transaction (i.A choice that communicates to the owner the right to purchase a specific cost is referred to as a call; a choice that conveys the right of the owner to cost a specific price is referred to as a put. The seller might grant an option to a purchaser as part of another deal, such as a share problem or as part of a worker reward scheme, otherwise a buyer would pay a premium to the seller for the choice.
