What could be done if question 1 is modified so that Sanpo owes the $2.3 million on June 13, but the $1.5 million receivable is still scheduled for June 3? What is a letter of credit? What risks do...

What could be done if question 1 is modified so that Sanpo owes the $2.3 million on June 13, but the $1.5 million receivable is still scheduled for June 3?

What is a letter of credit? What risks do the parties to a letter of credit take? What is arm’s-length pricing?