Letter of Guarantee

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Letter of Guarantee

A letter from a bank to a brokerage firm which states that a customer (who has written a call option) does indeed own the underlying stock and the bank will guarantee delivery if the call is assigned. Thus the call can be considered covered. Not all brokerage firms accept letters of guarantee. Also: letter issued to Option Clearing Corporation by member firms covering a guarantee of any trades made by one of its customers, (a trader or broker on the exchange floor).

Letter of Guarantee

In call 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 call option and does not have the underlying asset in his/her brokerage account, the brokerage may require a letter of guarantee in order to eliminate the risk that the investor will not deliver the securities should the call be exercised.

letter of guarantee

A letter from a bank stating that a customer owns a particular security and that the bank will guarantee delivery of the security. A letter of guarantee is used by an investor who is writing call options when the underlying stock is not in his or her brokerage account.
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2) Letters of Guarantee to participate on pain of exclusion will have time validity at least two hundred and ten (210) days starting from the day following the deadline for submission of tender offers.
To avoid the paperwork for letters of guarantee, many people exploit the situation by making counterfeit papers.
This facility will replace Bombardier's existing North American credit facility and provide Bombardier with maximum flexibility in issuing letters of credit and letters of guarantee.
The letters of guarantee will not be accepted if they have a period of validity of less than 10 months from the date of tender.
Odyssey recently announced that all financing arrangements were in place to provide Odyssey's 50 percent share of the US$11 million Letters of Guarantee to the Egyptian General Petroleum Corporation ("EGPC") for the above concessions.
The Letters of Guarantee must be issued by the Bank, which operates legally in Greece or any other EU Member State or European Economic Area (EEA) or in countries which have concluded a Cooperation Agreement with the EU, which allows Participation in tendering for public contracts.
Odyssey announces that all financing arrangements are in place to provide Odyssey's 50 percent share of the US$11 million Letters of Guarantee to the Egyptian General Petroleum Corporation for the above concessions.
a) in letters of guarantee or TSMEDE banks operating legally in Greece or in any Member State of the European Union.
For bidding for more than one Species Subgroup, the total amount of letters of guarantee calculated cumulative 2% of total budgeted expenditure (excluding VAT) for Subgroups Species for which it submitted a tender.
The letters of Guarantee, if not couched in Greek, accompanied by an official translation in the Greek language;
Deposits and Guarantees required: For participation in the procedure required tender guarantee of 2% of the total budget of the standard contract of service, excluding VAT (ie 90 160 EUR), which consist of either bank letters of guarantee operating lawfully in Greece or in any Member State of the European Union, the EEA .
The letters of guarantee required by section contract in case of a tender for individual tranches are as follows