tag:blogger.com,1999:blog-2400653127452801414.post4599414635634127913..comments2023-09-04T14:15:14.370+01:00Comments on Islamic Finance Resources: Shariah Compliant Call Option: Mechanism 1Dr Nikan Firoozyehttp://www.blogger.com/profile/08118358942500281707noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2400653127452801414.post-75101990180010703052009-03-11T14:32:00.000+00:002009-03-11T14:32:00.000+00:00Arboun is only acceptable to Hanbali (and it is a ...Arboun is only acceptable to Hanbali (and it is a whole lot easier than this). This is supposed to mimic that same structure.<BR/><BR/>Note that the murabaha always gets paid off when the commodity price is larger than strike price at the end. (i.e., when the call option has positive intrinsic value). Otherwise, it does not cover it.<BR/><BR/>I do think an objection could be that you can get any forward from a combination of salaam and murabaha, but this hiyal is usually not allowed. This structure is just a variation on the forward.Dr Nikan Firoozyehttps://www.blogger.com/profile/08118358942500281707noreply@blogger.comtag:blogger.com,1999:blog-2400653127452801414.post-9740964504157650062009-03-11T14:24:00.000+00:002009-03-11T14:24:00.000+00:00Well, the accepted way for a call option is the Ar...Well, the accepted way for a call option is the Arboun, a downpayment with revocation option. The structure shown here has a weired aspect: The Murabaha entered by the SPV cannot be paid with a substantial probability, entering into debt under such a condition does not look healthy at all.Michaelhttps://www.blogger.com/profile/08242730603085202226noreply@blogger.com