guarantee letter

Guarantee letter

A commercial bank's letter assuring payment of the exercise price of a client's put option.

Guarantee Letter

In put options, a guarantee of delivery of securities made by a bank to a brokerage on behalf of the bank's client. When an investor is writing a put option and does not have the cash available to buy the underlying asset if the option is exercised, the brokerage may require a guarantee letter in order to eliminate the risk that the investor will not be able to buy the underlying asset. See also: Cosigner, Letter of guarantee.

guarantee letter

A letter that is issued by a commercial bank guaranteeing that an investor who is writing a put option will pay the required sum in the event that the put is exercised against the investor.
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for the signing of the contract, a performance guarantee letter equal to five percent (5%) of the contract price will be lodged, in accordance with article 10 of the contract.
The OVP signed a memorandum of agreement with PGH in order to give a guarantee letter directly from the PGH," Robredo's spokesperson Georgina Hernandez said in Filipino.
A loan agreement and guarantee letter for 'harnessing agribusiness opportunities through robust and vibrant entrepreneurship supportive of peaceful transformation' or 'Harvest' was also signed.
In civil litigation, following this request of postponing the execution of the local court decision, the sum -- which is usually the amount in dispute and whatever is added to it by the court, such as interest or penalties -- determined by the local court decision or a bank guarantee letter covering that amount must be given to the clerk's office.
The issuer bank, designated bank or any other authorized person who acts on the basis of the guarantee letter will not be committed to assign proceeds on behalf of the beneficiary and will be at liberty to accept or reject it (if accepted, it will be sent to the beneficiary in the form of letters, emails, telex or swift messages).
Pakistan has also sent official guarantee letter to Iran so that final shape could be given to gas pipeline project between two countries immediately, sources in Petroleum and Natural resources ministry informed.
In this case Tele2 was required to provide a parent guarantee letter to the Post Office by 25 December 2003.
TERMS: Cashiers check, or company check accompanied by bank guarantee letter of payment to Wilson Auction & Realty Co.
A guarantee letter from a credit or financial institution or an insurer (form 4 - letter of guarantee) or deposit the contract no.
Dadalin ang reseta mula sa doktor bagong reseta, iva-validate natin iyan at bibigyan natin ng guarantee letter sa iba't ibang mga botika.
products, including extracts from quality certificates for similar products, a certificate of own production, a catalog of products of own production, quality certificates, a guarantee letter on the ownership of the proposed products
However, I had to return again on a date specified on my claim stub, normally after four weeks, to receive the guarantee letter for my wife's treatment.