Derivative Instruments and Islamic Finance

Obiyathulla Bacha and Pattarake Sarajoti

Chapter 13 in Financial Derivatives:Markets and Applications, 2023, pp 471-502 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This chapter provides an overview of Islamic financial contracts that have the features of modern-day derivatives. It also outlines some of the necessary features for an Islamic financial instrument and examines the opinion of Islamic jurists/scholars on the validity of modern derivative instruments. An in-depth description of several Shariah-compliant structured products is provided. The mechanics of their use in risk management is illustrated. On completing this chapter, you should have a good understanding of Shariah-compliant risk management tools.

Keywords: Derivatives; Financial Derivatives; Derivative Markets; Forwards; Futures; Options; Shariah Compliant Derivatives; Islamic Derivatives (search for similar items in EconPapers)
JEL-codes: G1 G10 G11 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789811261480_0013 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789811261480_0013 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789811261480_0013

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().