An Islamic equivalent of the conventional call option. It is structured in a way that the premium paid by the buyer (the long) is treated as arbun or down payment deposit. Being a deposit, urboun could constitute part of the purchase price when the call option is exercised. In this sense, the premium is not treated as a fee (fixed payment) and it will be part of the purchase price in case of exercise by the buyer.
Arbun call option (حق اختيار الشراء بالعربون) is also spelled arboun call option/urboun call option.
