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Using Murabaha in Opening Letters of Credit

In practice, murabaha (cost-plus sale) has numerous applications both on the retail level (business to customer) and the corporate level...

Interest In Accounting

Interest, as a term, may have different connotations in different contexts and uses. In a given context, it refers to...

Disclosing Entity Versus Reporting Entity

A reporting entity is an entity that is expected and required to address the information needs of a general group...

Difference Between Disclosing Entity and Reporting Entity

A reporting entity is an entity that is expected and required to address the information needs of a general group...

Difference Between Fair Presentation and Faithful Representation

Fair presentation is an accounting standards’ requirement that an entity’s financial statements should be presented in a fair way to...

Relationship Between Strike Price of an Option and Its Underlying Price

An option contract whose strike price is better than the market price of its underlying asset is said to be...

Difference Between Floors and Floortions

A floor is a set of floorlets or interim period floors that are equivalent to put options on some reference...

Writing Naked Options: an Example

Writing naked options is usually subject to initial margin requirements. The initial margin that is required by the CBOE for...

Examples of Rebuttable Presumption in Accounting

A rebuttable presumption is an accounting rule that an entity applies to govern specific classification and measurement considerations in all...

Illiquid Options Versus Standardized Options

An illiquid option is a contract for which there is no secondary market, i.e., it is not tradable on an...