Islamic Finance

Bilateral Murabaha

December 3, 2021
Derivatives

Best-of-Two-Asset Option

December 3, 2021

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An exotic option (specifically a type of an either-or option or an alternative option) whose payoff is based on the highest individual performance fared by either of two different underlyings such as stocks or indexes. For example, a best-of-two option could provide a payoff dependent on either the payoff of a call option on a given stock or the payoff of a put option on another stock.

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