The down payment is set as a percentage of the cost of the item being purchased; the premium is based on the difference between the strike price and the "actual price of the stock in the market at contract maturity".
The down payment is set as a percentage of the cost of the item. This item is being purchased. The premium is based on the difference between the strike price "actual price of the stock in the market at contract maturity". The premium is based on the difference between the "actual price of the stock in the market at contract maturity".