Essentially, a floor is a strip of put options on forward interest rates. Therefore, a floorlet is a put option...
Options (conventional options) are derivative contracts that give the holder the right, without the obligation, to trade (buy or sell)...
Murabaha (cost-plus sale) is a type of ba’i (sale) in which the seller is under obligation to reveal the actual...
Murabaha (also spelled murabahah) is a shari’a compatible mode of debt financing which involves the sale of a commodity mostly...
A multi-asset option is one whose payout depends on the overall performance of more than one underlying asset. In addition...
An option is a derivative contract giving the holder (buyer) the right, without the obligation, to trade (buy or sell)...
From a shari'a perspective, riba has a number of characteristics that set it apart from legitimate sources of income. Accordingly,...
Firms could use swaps to transform a floating-rate rate loan to a fixed-rate loan. For example, a firm has arranged...
Gharar is an element of risk (mukhatarah), uncertainty, hazard, or lack of transparency (asymmetric information) that could render a contract...
A long cap is a cap held by the purchaser (the long) against payment of the cap premium to the...