A structure that bears resemblance to a conventional option (khiyar taqlidi). However, this structure uses wa’ad (promise) in a specific form: unilaterally binding promise (wa’ad that is binding on one party to a transaction- wa’ad mulzim). One party (such as a bank) may undertake to the other (its customer), on the contract date, to exchange a given currency for another at a pre-agreed rate on a future date. The customer will pay a fee on the same date to the bank against the latter’s promise. On the future date, the customer can request the bank to deliver on its promise or might choose to release the bank from its unilateral undertaking. In case of execution, the two currencies will be exchanged at the pre-agreed exchange rate.

This structure is similar to an option in the sense that execution, like exercise, will be sought if the promisee (the customer who was issued the promise) finds it favorable to do so (exchange rate at the future date turns out to be favorable- i.e., less than the rate to be paid or more than the rate to be received). The fee of wa’ad is equivalent to an option’s premium.