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Mudaraba Sukuk

A subclass of musharaka sukuk. Mudaraba sukuk are, by definition, certificates that represent ownership in projects or activities managed on…

Long Calendar Put Spread 

A calendar put spread that is established by selling a front-month put option at a given strike price and buying…

Mustawriq

The party who seeks liquidity from entering into a tawarruq (Islamic monetization). In Arabic script, mustawriq (also mutawarriq) is written:…

Lookback Feature

With respect to option contracts and other types of derivatives, it refers to the feature allowing the holder (the long)…

Mudarabah Capital

The capital that is provided by rab al-mal in a mudarabah contract. Put another way, it is the amount of…

Improver Option

A barrier option which has additional (adjustable) barrier levels. Each time a barrier level is breached, the strike of the…

Mu’amala

Another name for mudaraba (mudarabah/ mudharaba/ mudharabah); by definition, it is a partnership (sharakah) in profit whereby one party (rab...

Guaranteed Exchange Rate Forward Contract

A quanto forward whose underlying is a foreign stock and whereby the holder is allowed to isolate the effect of…

Seed Capital

Capital that is contributed at the first stage (pre-incorporation stage) of a venture enterprise, i.e., after the business plan is…

Generalized Option

An option on the minimum or maximum of two risky assets where the quantity is adjusted by a multiple of…