Advertising

Bank guarantee letter

• Is a document by which an approved bank certifies that an put option writer or grantor has sufficient funds at the bank to cover the write. The funds are equal to the exercised value of the put. This value is equal to the strike price multiplied by the number of shares. It effectively reflects an outright purchase of the underlying security at the strike level.

 
 Embedded terms in definition
 Cover
Grantor
Option writer
Option
Purchase
Put option
Put
Security
Shares
Strike price
Underlying security
Underlying
Writer
Write
 
 Related Terms
 

<< Bank for international settlements Bank line >>

Multi-Tasking In Your 30s, 40s or 50s: Managing for today and saving for tomorrow, including a child's college expenses and your retirement More...

We awaken in others the same attitude of mind we hold toward them. - Elbert Hubbard

Advertising



Copyright 2009-2018 GVC. All rights reserved.