Islamic Finance

Applications of Istisna’a in Banking and Finance

August 14, 2021
Derivatives

Partial Time End Option

August 14, 2021

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A lookback warrant (specifically, a lookback call warrant) which is associated with a partial lookback period (hence it is also known as an anti-crash warrant). The reset mechanism allows the holder to get a lower strike if a crash (sharp drop) occurs during the lookback period. In other words, the strike can be equal to the lower of the underlying value at inception or the underlying value at a given future time.

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