Letter Of Guarantee

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Letter Of Guarantee
– Contract issued by a bank for a customer who formally agrees to purchase goods from a supplier with a promise to fulfill financial obligations in case of default.
– Document issued by bank for a call writer confirming that writer owns the underlying asset and can deliver them if the call is exercised.

Recommended for you:

  1. Maturity Guarantee
  2. Counterparty Risk
  3. Covered Call
  4. Letter of Credit (L/C)
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