Risk management in Islamic finance
Subtitle: an analysis of derivatives instruments in commodity markets
By: by Muhammad Al-Bashir Muhammad Al-Amine.
Series: Brill's Arab and Islamic laws series -- v. 1
Publisher: Brill
Published: 2008
Place of publication: Leiden; Boston
Language: eng
Number of pages: 337
ISBN-13: 9789004152465
Subjects: Commodity exchanges -- Law and legislation; Commodity exchanges -- Religious aspects -- Islam; Finance (Islamic law); Option (Contract law, Islamic); Sales (Islamic law0; Risk management -- Religious aspects -- Islam
Description: "This study addresses derivatives instruments in Islamic finance. It highlights the benefits of these instruments, their legal aspects and the appropriate alternatives. The forward, futures and options contracts in commodity markets are discussed and the arguments in favour of and against these instruments examined. The forward contracts issue includes the possibility of trading gold in forward basis, the forward market for currencies and the possible alternative to manage related risks. With the examination of futures contracts, the main arguments against such a contract are addressed, for example the sale prior to taking possession and the sale of debt hedging and speculation. The study proposes khiyar al-shart and bay al-arbun as tools of risk management and alternatives to options. The sale of pure rights is at the center of the admissibility of options in Islamic law and is investigated comprehensively."--Jacket.
Notes: Includes bibliographical references and index.
Table of contents: title: The forward commodities market; title: Is it permissible to exchange gold with paper money on forward basis?; title: The forward market for currencies; title: Concept, scope of futures contracts and speculation; title: Sale prior to taking possession, sale of debt; title: Futures market regulation; title: Concept and scope; title: Khiyar Al-Shart, risk management and options; title: Arbʻūn risk management and options; title: The sale of pure rights and the legality of options.