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Closing Out an Option

An option contract is a derivative contract that grants its owner the right, without the obligation to buy (for a...

Unwinding a Swap

A process of terminating a swap by marking it to market and calculating its value in order to determine which...

Repo’s Effect on Options

On specific exchanges, investors are permitted to short stock they do not own. In so doing, an investor borrows stock...

Difference Between Khiyar and Wa’ad

Khiyar is an option that is given to one or both of the contracting parties or a third party to…