put guarantee letter

put guarantee letter definition - finance
A letter from a bank or other financial institution that says that the writer of the put option has sufficient funds on deposit at the bank to be able to buy the securities that the put has been written on. See also put.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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