Derivatives
WO Call Option
September 5, 2021
Islamic Finance
Rab al-Mal
September 5, 2021

It stands for principal-protected market-linked debenture; a market-linked debenture (MLD) whose issuer promises to pay back the principal amount (face value) of the debenture to the holders. However, the coupon rate is not fixed but rather linked to one or more economic variable such as equity share price (equity index), foreign exchange rates, commodity prices, etc.

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