Derivatives

WO Call Option

September 5, 2021
Islamic Finance

Rab al-Mal

September 5, 2021

Share

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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