Shari'a prohibits riba al-fadhl on the grounds that it involves injustice, deception, and trickery. In Islamic finance, there is no...

An option is a derivative contract which gives the holder (buyer) the right, without the obligation, to exercise on an...

A swap is an agreement between two parties which entails the exchange of two different streams of cashflows over a...

Shari'a prohibits riba al-nasi'ah (deferment riba) for the following reasons: Riba al-nasi'ah constitutes gains earned at the expense of others...

Khiyar al-aib is an option (khiyar) to annul a transaction for defects in the subject matter (whether the object of...

A currency swap is similar, in concept, to an interest rate swap, but they differ quite remarkably in specific aspects....

A Parisian option is a crossover between a barrier option and an Asian option. However, the payoff of a Parisian...

Buying a put option (i.e., a long put position) is mainly a bet that the underlying price is going to...

In simple terms, a currency option is the right to buy or sell an amount of a currency at a...

Gamma is the second derivative of the option’s price (premium) with respect to the underlying price/ rate. It is usually...