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Heavy Equipment Brokers ( HEB ) is a brokerage firm registered in the Cayman Islands that helps companies locate manufacturers of specialized heavy machinery for

Heavy Equipment Brokers (HEB) is a brokerage firm registered in the Cayman Islands that helps companies locate manufacturers of specialized heavy machinery for large infrastructureconstruction projects. The Government of Mexico wants to purchase underwater drilling equipment from HEB to construct a tunnel. HEB is acting as the middleman in this transaction andhas the obligation to issue the required 20% performance guarantee in favor of The Government of Mexico while also paying 25% advance payment to the equipment manufacturer in Brazilto start the manufacturing of the specialized equipment. Which type of letter of credit should HEB ask the Brazilian manufacturer to issue to help HEB meet the condition of issuing theperformance guarantee? A) Transferable standby letter of credit B) Revolving documentary letter of credit C) Red clause standby documentary letter of credit D) Corporate documentary letter of credit

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