A document provided by a bank in options trading to guarantee that the underlying security is on deposit and available for potential delivery.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
A statement by a bank to the holder of a call option stating that the writer (or seller) of the option has deposited the underlying asset with the bank. This guarantees that delivery will be made in proper course should the holder exercise the option.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved