Islamic Finance

Islamic Option Contract

July 18, 2021
Derivatives

One-Touch Accrual Swap

July 18, 2021

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An accrual swap in which any downward or upward slide of an underlying out of the boundaries of a specified range terminates all further potential for accrual. Otherwise, accrual is maintained until expiration date of the swap.

Binary accrual swap combines both an accrual swap and a binary option on the underlying asset.

This swap is also known as a one-touch accrual swap.

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